Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 7560

PROJECT COMPLETION REPORT

SRI LANKA

CONSTRUCTION INDUSTRY TRAINING PROJECT(CREDIT 1130-CE)

DECEMBER 30, 1988

This document has a resticted distribution and may be used by recipiens only in the perfonnance oftheir officil dudes. Its contents may not otherwise be disclosed without World Bank authorization.

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ACRONYMS AND ABBREVIATIONS

ACCSL - Association of Construction Contractors of Sri LankaAMP - Accelerated Mahaweli ProgrammeBC - British CouncilBSM - Basic Skill ModuleCHPB - Centre for Housing, Planning and BuildingCITB - Construction Industry Training BoardCITP - Construction Industry Training ProjectDE - District EngineerDOL - Department of LabourGOSL - Government of Sri LankaICTAD - Institute for Construction Training and DevelopmentIDA - International Development AssociationIFOAPCA - International Federation of Asia and Pacific Contractors'

AssociationMHE - Ministry of Higher EducationMLGHC - Ministry of Local Government, Housing and ConstructionNAB - National Apprenticeship BoardNHDA - National Housing Development AuthorityNIBM - National Institute of Business ManagementNSCCI - National Steering Committee for the Construction IndustryNTCCI - National Training Committee for the Construction IndustrySCCI - Secretaries' Committee for the Construction IndustrySD & CC - State Development and Construction CorporationSDR - Special Drawing RightsSEC - State Engineering CorporationUK - United KingdomUSD or US$ - United States Dollars

FOR OFFICIAUL USE OrNLYTHE WORLD BANK

Washington. D.C. 20433U.S.A.

Oike of Doctrawa'Opmatm tEvwakutwn

December 30, 1988

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Pass-Through Audit Report on Sri Lanka - ConstructionIndustry Training Project (Credit 1130-CE)

Attached, for information, is a copy of a report entitled"Pass-Through Audit Report on Sri Lanka - Construction Industry Project(Credit 1130-CE)" prepared by Resources Development Consultants, Ltd.on behalf of the Government of Sri Lanka, with an overview memorandumprepared by the Asia Regional Office. Further evaluation of thisproject by the Operations Evaluation Department has not been made.

Attachment

This document has a trescted distribution and nmay be used by recipbents only in the perfionrmncof their ofcial duties. Its contents may not otherwise be disclosed without World Bank authorization._hi _ouethsarsrce itiuinadmy eue yrcpet nyIh efrac

PROJECT COMPLETION REPORT

SRI LANKA

CONSTRUCTION INDUSTRY TRAINING PROJECT(Credit 1130-CE)

TABLE OF CONTENTSPare No.

Preface .................................................... iData Sheets.......................... iiHighlights ................................................. v

I. PROJECT BACKGROUND ........................................ . 1(a) Socio-Economic Setting ... 1(b) Sector Setting . . . 5(c) Trends in Construction Employment ..................... . 7(d) Social Characteristics Affecting

the Construction Industry . . . 10Ce) Project Description and Objectives ... 12

Objectives ... 13Project Components ... 14Expected Benefits ... 14

II. PROJECT IMPLEMENTATION . . . 17(a) Overview ............................................... 17(b) Management ................... ........................... 17*c) Inter-Ministerial Coordination . . 19(d) Physical Implementation .. 20Ce) Improvements to Existing Institutions .................. 28(f) Building of New Facilities . . 29(g) Procurement of Equipment . . . 30(h) Technical Assistance ..... . 31(i) Fulfillment of Covenants . . 32

III. PROJECT COST AND FINANCING . . . 36(a) Appraisal Estimates. , . . . 36(b) Final Cost of the Project . . . 36Cc) Expenditure by Category . . . 36(d) Technical Assistance Costs . . . 37(e) Financing and Disbursement . . . 37

Table of Contents (continued)

IV. PROJECT OPERATING OUTCOME .. .............................,. 39(a) Overview Attainment of Project Objectives. 39(b) Trainee Enrollment and Output. 41(c) Short-Term In-Service Training Courses. 46(d) Development of Curricula and Other Training Materials 49(e) Special Studiest u d i es............. .... 50

Assessment of Training Needs .. 50Impact Assessment Study . . 60

V. BANK GROUP PERPOR4ANCE... 66

VI. LESSONS LEARNED AND RECOMMENDATIONS . . . .67(a) General ... 67(b) Physical ..................... . .68

Project Formulation. ................. . . .68Project Implementation ... 69Supervision ............. .... . .70Technical Assistance . . 70

CHARTS ......... o .. .................. 73

TABLES .......................... 79

ANNEXES

Annex 1 - Government Departments and Boards Engaged inConstruction Work . ........ . 103

Annex 2 - Composition of Project Cell .. 104

Annex 3 - List of Artisan Training Centres .... 105

Annex 4 - Map of Sri Lanka Showing Locatini of TrainingInstitutes . ............ .. 107

Annex 5 - List of Specifications Prepared by the CITP . 108

Annex 6 - Bibliography . ........ 109

Annex 7 - Comments From the Borrower:

(a) Ministry of Labour .. 111(b) Ministry of Local Government Housing and

Construction . 112(c) Institute for Construction Training and

Development .. ........... 114

- i -

PROJECT COMPLETION REPORT

SRI LANKA

CONSTRUCTION INDUSTRY TRAINING PROJECT(Credit 1130-CE)

PREFACE

1. In Marrh 1981, the International Development Association approveda credit for SLtR 10.9 million (US$13.5 million equivalent) to theDemocratic Socialist Republic of Sri Lanka, for a project designed toincrease the supply of trained manpower to the local construction industry.

2. The Project (US$25 million total project cost) was aimed atproviding training in the basic skills, which were in short supply, toartisans in the country's construction trades; in addition, it sought toimprove the use and maintenance of plant and equipment training operatorsand mechanics, increase the effectiveness of work planning and supervisionby training middle and upper management in contract procedures, sitemanagement and quality control, strengthen the agencies and institutionsinvolved in training for the construction industry, and finally, improvemethods and procedures relating to the industry. To achieve theseobjectives, the project established a unified modular training systemdesigned to give basic trade skills to about 45,000 unskilled workers andupgrade the existing skills of some 9,600 experienced construction workers.The program also included training of about 1,800 mechanical equipmentoperators, some 900 work supervisors, and another 80 senior works managers.By the end of the project period, more than SDR 10.1 million was disbursedwhile SDR 0.78 was cancelled an of the last disbursement date ofJuly 21, 1987.

3. The PCR was prepared by a local consulting firm on behalf of theproject authorities. In accordance with the revised performance reportingprocedures, this report has been read in the Operations EvaluationDepartment (OED) but the project was not audited by OED staff.

4. The report was sent for comment to various potentially interestedGovernment Agencies. The three responses received from the Ministry ofLabor, Local Government.Housing and Construction (NLGHC) and from thesuccessor to the implementing agency ,the Institute for Construction andDevelopment (ICTAD), confirmed the general fairness and appropriateness ofthe consultant's re ,jrt. Their principal comments clarify the reasons foradjustments to training targets based on decisions taken during projectimplementation to better reflect the significant changes in economicconditions in Sri Lanka, and in the light of periodic updating of trainingneeds data. These adjustments at the same time emphasized qualitativeimprovements to training programs overall and a shift in priority frombasic job entry skills training to in-service courses. The Borrower'scomments are reproduced in Annex 7.

- ii -

PROJECT COMPLETION REPORT

SRI LANKA

CONSTRUCTION INDUSTRY TRAINING PROJECT(Credit 1130-CE)

ASIC DATA SHEET

KEY PROJECT DATA(amounts in US$ millions)

Appraisal Actual as Z ofItem Expectation Actual Appraisal Estimate

Total Project Cost 25.0 18.8 252 underrunAmount of IDA Credit SDR 10.90 SDR 10.11 72 underrunCompletion Date * 6184 12/86 30 months delayProportion completed 2 1002 100oOperation Outcome SatisfactoryInstitutional Performance Satisfactory

Note: * " Procurement of equipment and furniture only.Project had no civil works.

CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS

FY82 FY83 FY84 FY85 FY86 FY87

Appraisal Estimate 2.44 6.09 7.48 10.9 - -Actual 2.11 3.29 5.44 7.2 8.16 10.1Actual as 2 of Appraisal 85 54 73 66 75 93Date of Final Disbursement (07121187)Total Disbursed in SDR 10.113 million - cancelled: 786,000

PROJECT DATES

Original Delays fromPlan Revisions Actual Original Plan

First Mention in Files - - 03/21/79 -

Negotiations - - 02/23/81 -Board Approval - - 04/07/81 -Signing of Credit - - 06/01181 -

Effectiveness 06130/81 - 08/19/81 50 daysClosing Date 12131/84 12/31/86 12/31/86 24 months

- iii -

STAFF INPUTS

(staff weeks)

FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88

Identification/Preparation 8 *

Appraisal 60 *

Negotiations 2

Supervision 9.1 10.6 10.4 1.7 3.2 10.1

PCR 2

Subtotal 8 62 9.1 10.6 10.4 1.7 3.2 10.1 2

note: data with an asterisk is estimated

MISSION DATA

Special- Perform- TypesNo.of izations ance of

Date Persons Represented Rating Trend Problems

Identification/Preparation 06/80 2 2 na na na

Appraisal 07/80 6 4 na na naPost-Appraisal 04/81 1 1 na na na

Supervision I 06/81 1 1 1 1Supervision II 10/81 2 2 1 1Supervision III 07/82 3 3 2 1 TMSupervision IV 04/83 3 3 2 1 TSupervision V 07/83 2 2 2 1 PSupervision VI 09/83 2 2 2 1 PSupervision VII 09/84 1 1 2 1 FTSupervision VIII 12/85 1 1 2 1 MSupervision IX 08/86 3 3 1 1 MSupervision X 03/87 1 1 1 1 TMCompletion 01/88 2 2

- ivr -

OTHER PROJECT DATA

Borrower: Democratic Soicialist Republic of Sri Lanka

Executing Agency: Ministry of Local Government Housingand Construction

Follow-on Projects Second Vocational Training ProjectCredit No. 1698-CEAmount: SDR 13.0 million (US$15 m. equival.)Approval Dates July 11, 1986

- v -

PROJECT COMPLETION REPORT

SRI LANKA

CONSTRUCTION INDUSTRY TRAINING PROJECT(Credit 1130-CE)

HIGHLIGHTS

1. Sri Lanka has experienced wide swings in economic policiesduring the past 20 years, which have affected the growth and development ofthe construction industry. The change in Government in 1977 led to asubstantial revision of economic policies: trade restrictions were removedand price controls relaxed. The construction industry was accorded thestatus of a lead sector in development, with projects in irrigation, power,housing and highways playing a key role in a bid towards an economic "take-off". However, due to previous periods of stagnation, the constructionindustry was poorly equipped in terms of skilled manpower and technology tohandle the surge in construction activity following the revitalization ofthe economy (para 1.03).

2. The IDA-funded Construction Industry Training Project wasappraised in June/July 1980, and became effective in August 1981. It hadseveral objectives, including: to increase the number of trained craftsmenin the building industry and thereby expand the capacity of theconstruction industry to cope with the expected workload, to upgradethe skills of experienced workers, to train mechanical equipment operators,works managers and supervisors, to develop on-site training centers inmany of the existi-ig construction work sites, to develop and institutetrade testing mec:,anisms, and to improve methods and procedures related tothe construction industry (para. 1.25).

3. The Credit became effective promptly after it was signed.Because of the country's conditions and fewer prospective trainees, theGovernment requested the closing date to be extended twice. Thus, theoverall project completion was delayed by two years, and severaladjustments in the targets were made during project execution. The closingdate was December 31, 1987.

4. From the outset of the project there were doubts about thetraining targets for artisans. The reasons for the lower expectations foradditional labor demand were: larger-than-expected numbers of Sri Lankansreturning from the Middle East, a gearing down of the Mahaweli Programconstruction activities and the general slowing of the national economicgrowth. This led to a downward revision of initial targets. In January1982, the National Training Committee for the Construction Industry decidedto cut back training targets for artisans by about 40%. On the other hand,it increased the numbers for mechanical equipment operators, supervisorsand works managers following increased demand for these categories.Compared to the original target of 54,600, some 32,800 artisans weretrained under the project. In addition, 2,331 men took the mechanicalequipment operators and mechanics course vs a target of 1,800; 1,500graduated from the work supervisors course vs a target of 900, and therewere 1,100 graduates for the works managers program vs an expected targetof 80 (para. 4.01-03).

- vi -

5. The other objectives originally envisaged, i.e., strengtheningthe agencies and the institutions involved in on-site training and tradetesting and improving the testing methods and procedures related to theconstruction industry, were met to varying degrees. As revealed by TracerStudies, inspections carried-out at over 500 work sites found on-sitetraining programs to be operating successfully; mechanisms for trade-testing were put in place but only a small number of artisans have so farbeen tested. The trade-testing has to be improved and expanded in order tohave any impact in the quality control of the graduating tradesmen.Moreover, manuals on methods and procedures were produced, although it isdifficult to ascertain how many are used regularly by the respectiveworkers (paras. 4.04-05, 4.36).

6. According to Impact Assessment Studies carried out in 1987, thequality of the trained workers, in general, has been found to be as good asor better than those trained by other agencies. The training thus, hasshown to be an important factor on the employability of graduates; however,employment is mainly part-time due to the nature of the industry. Inaddition, the introduction of the ICTAD(CITP) placement assistance officewas very productive (para 6.04).

7. The overall technical assistance provided was satisfactory but ittook 9 more staff-years than the originally planned 36 sly, and cost 54%more than appraisal estimates. The reasons for that could be attributed tosome degree to additional training programs, the considerable fall in therupee exchange rate against the US dollar, and the extension of theduration of the project by two years. In total, 31 expatriate consultantswere utilized at various lengths of time amounting to 45 s/y (para. 6.08).

8. A follow-up project was prepared by the Ministry of LocalGovernment in 1985 with the following objectives: to create an institutionalframework to sustain training and industry development started under thefirst project, to increase the supply of semi-skilled, skilled, andmanagerial personnel to the industry, to improve the quality of manpowersupplied to the sector, and to institute a system of cost recovery invocational training for the construction sector. The Second VocationalTraining Project was for SDR13.0 million and the Credit was approved inJuly 1986.

CHAPTER 1

PROJECT BACKGROUND

a) SOCI0-ECONOMXC SEfl:NG

1.01 Introduction

Sri Lanka has experienced wide swings in economic policies during

the past 20 years, which have affected the growth ard development

of the construction industry. In general, economic upswings and

downturns have a magnified impact on the construction industry and

this tendency has been clearly evident in Sri Lanka (see chart 1

and Table 1).

1.02 Early Seveaties

During the early part of the seventies (1970-1977) the construction

industry was sluggish and recorded growth rates that varied from

7% in 1974 to -9.6% in 1977. The average rate of growth in the

Construction Sector during the period 1974 to 1977 was -1.46%*.

During this period there was also a shift towards the Public Sector.

Furthermore, the construction industry (particularly the Housing

Sector) tended to be regarded as a resource absorbing rather than

a resource producing sector and therefore less emphasis was placed

on infrastructure improvement. Insufficient resources for invest-

ment added to this situation although consumption expenditure was

maintained at high levels (average of 86% between 1970-1975).4

Consequently, Gross Domestic Capital formation declined to an

average rate of 15.5% during the same period . The overall devel-

opment strategy was based on import substitution which necessarily

entailed severe restrictions on international trade.

1 .3 Construction Boom

The change of government in 1977 led to a complete revision of economic

policiest trade restrictions were removed and price controls relaxed.

* Source: Central Bank Reports (1978 to 1986)

+ Source: Central Bank - Review of the'Economy 1978.

2

The construction industry was accorded the status of a lead sector

in development with infrastructure projects in irrigation, power,

housing and highways playing a key role in a bid towards an economic

"take-off".. The lead sector role assigned to the construction

industry, in the Medium Term Economic Plan (1979-1983), centered

round the following Programmes:-

i) The Accelerated Mahaweli Programme

ii) The Urban Development & Housing Programme

A major component of these Programmes was given to foreign contrac-

tors, which eased the pressure on domestic construction resources

to an extent. The relaxation of controls also stimulated Private

Sector investment in buildings, and construction activity in the

tourist industry. As a result, the Construction Sector reported

real growth rates of 28.2% (1978), 20.9% (1979) and 11% (1980)

(see Table 1).

1.04 Resource Constraints

However, the previous periods of stagnation had meant that the

construction industry was poorly equipped to handle this sudden

upsurge in demand. In general, the level of technology and capital-

ization was low and only a few construction firms had the capacity

to handle large projects. The surge in construction activity,

followino the revitalisation of the economy, was immediately

reflected in construction costs which increased by 50% to 100%

between 1977 and 1979.. Resource shortages were met with imports,

but the shortage of skilled workers was reflected in their wages

which escalated sharply during this time. e.g. In the period 1979-

1980, the wages of a Master Carpenter increased by 34.3%, Master

Mason by 32.3% and an unskilled helper (Masonry) by 32.3% (see

Chart 2 and Table 2). The migration of construction workers to

the Middle East also added to the problem.

The IDA-funded Construction Industry Training Programme was launched

in order to increase the number of trained craftsmen in the building

industry and thereby expand the capacity of the construction industry

+ Dr. S. Ganesan "Management of Small CozstructLon Fir s -Asian Productivity Organization - 1982

3

to cope with the increase in the expected work load. The original

objectives (as given in the Appraisal) were to train 45,000 new

recruits, upgrade the skills of 9,600 experienced workers, train

1,800 Mechanical Equipment Operators, 900 Supervisors and 80

Senior Works Managers.

However, the changes in the economic environment led to a downward

revision of these estimates.

The sudden increase in demand and the upsurge in economic activity

created problems of resource constraints and overstraining, which

were reflected in an escalation of inflation. Although inflation

was contained at moderate levels in 1978 and the first half of

1979, it began to escalate sharply since then, over and above

"corrective inflation" that occured as a result of liberalization

(see Chart 3).

1.05 Investment Revisions

The escalation of prices affected the cost estimates of the Lead

Sector Programmes which had to be revised upwards. The Lead Sector

Projects, estimated to comprise 31% of Public Investment (1979-

1983), had to be revised to 42% mainly on account of inflation.

Although the Wholesale Price Index* showed inflation rates of 16%

(1978), increasing to 34% (1980), other unpublished data indicated

much higher rates of inflation of 44% in the same period. It was

feared that escalating inflation would affect Sri Lanka's competitive

performance and lead to a balance of payments problem and the result-

ing budget deficits would also further aggravate the situation.

In 1980 it became evident that short term real interest rates were

negative, thereby jeopardising the level of domestic savings which

were necessary to finance capital projects in the Private Sector.

1.06 Down-turn

Early in 1980, the Government responded to these danger signals and

re-affirmed its committment to macro economic stability and fiscal

discipline. The GOSL took a series of measures, including the

imposition of fresh financial ceilings and the re-phasing of the

* Source: Central Bank of Sri Lanka - Annual Report 1982

4

Government's high priority programmes such as the Accelerated

Mahaweli Programme. The Government also raised lending and deposit

rates in an attempt to restore positive real interest rates. In

April 1980, the Central Bank minimum lending rate was raised from

10% to 12% and the National Savings Bank raised its interest rate

for one year deposits from 15 to 20%. Commercial banks followed by

raising their lending rates. Furthermore, GOSL also enforced a

limit on the construction of new public buildings.

These cut backs in construction activity resulted in a sharp down-

turn in construction activity and the growth rate in the Sector

plummeted to -3.0% (1982) (see Chart 1). The CITP made a downward

revision of their training targets, based on the 'Assessment of

Training Needs' conducted by the NIBM (1983). The revised figures

envisaged the demand for construction workers to be in the order

of 6,000 per annum.

The ethnic disturbances of July 1983 had an adverse impact on econ-

omil acttvity and this further reduced the demand for construction

in the Private Sector.

However, widespread unemployment in the Construction Sector was

averted by

i) increased migration to the Middle East

ii) continuation of Public Sector Investment Programmes

(though at a reduced pace) including the Million Houses

Programme,which had a beneficial effect in rural areas

iii) self-employment which enabled workers to tide over

difficult times

t.07 Conclusions

In general, cyclicality and uncertainty have had a negative effect

on the growth and development of the domestic construction industry

which (apart from a handful of large firms) is still characterised

by non-professionalism, under-capitalization, a low level of techno-

logy and a short-term view of profit maximisation*. As demonstrated

* Dr S. Ganesan - "The Development of National Contractors" -Part I - MLGHC , ICTAD - Aug. 1986

5

in the above analysis and Chart I, cyclicality is an inherent

feature of the construction industry and any attempt to improve

the status of the industry should provide for this phenomenon.

This would involve the development of systems to cope with cycli-

cality and/or the provision of cushioning measures to protect the

industry against the debilitating effects of short term variations

in demand.

Since the Government is the largest client of the construction

industry, stabilisation measures introduced in the Government

Sector will have a significant influence in promoting the devel-

opment of long term strategies for planning and improvement in

the construction industry as a whole.

b) SECTOR SETTING

1.08 Composition

The sectoral composition and the importance of the construction

industry in the economy have reflected the policy objectives of

successive governments. The shift in economic policies that

took place with the liberalisation of trade and controls in 1V77

led to a revitalisation of the economy in general, and the con-

struction industry in particular (see Chart 1, Table 1 and para

No.1.03 ). While construction activity remained at approximately

3% of GNP during the early 70s, the boom in construction and the

lead sector role assigned to it led to its contribution to GNP

being increased to 8.9% in 1977*. With the slowing down of the

construction boom, and the cut backs in Government-Programmes

(see para 1.06), the sectoral position declined to 7.9% (1984)

and 7.5% (1985)*

1.09 Demand

On the demand side, there are three main determinants of construc-

tion demand. They are:

1) Public Sector demand

2) Private Sector housing 4emand

3) Private Sector non-housing demand

* source: Central Bank Reports - 1978 to 1986.

6

1.10 Public Sector Demand

A consistent feature in Sri Lanka has been that the Public Sector

is the single most important determinant of construction demand.

The bulk of construction related activity today is generated

through the Public Sector which accounts for over 50% of total

construction activity. The lead sector projects, namely, the

Accelerated Mahaweli Programme (AMP), the Urban & Housing Develop-

ment Programme, and construction in the Investment Promotion

Zone alone accounted for 42% of Public Sector investment in 1983*.

1.11 Private Sector Housing Demand

Private Sector housing demand, which reached a peak in the period

1978-1980, declined thereafter due to the escalation in building

costs (in 1978-1979 alone this increased by 50 - 100% 1, the increas-

ing price of land and the high interest rates.

1.12 Private Sector Non-Housing Demand

Private Sector non-housing demand, which increased with the tourist

boom in the period 1978-1980, also declined. The ethnic disturbances

of 1983, which affected the Private Sector in general and the tourist

Industry in particular, resulted in a virtual standstill in cons-

truction activities, in the latter.

1.13 Supply

With regard to Supply, the importance of the Private Sector has shown

a significant increase in the last decade. Prior to 1977, a number

of Government departments and boards were created (or existed) to

undertake Public Sector Construction Programmes (as listed in

Annex 1).

In 1978, these Public Sector Construction Agencies accounted for

approximately 1/3rd of the total construction expenditure

* Source: Central Bank Reports - 1978 to 1986.

+ Ganesan - "Management of Small Construction Firms" -Asian Productivity OrganizatLon - 1982

* Review of Construction industry - March 1979 World Bank Report.

7

The current policies being pursued towards these agencies have

resulted in a move away from actual construction work to a

designing, consultancy and supervisory role with Private Sector

construction firms being employed for actual construction work.,

The overall Government strategy has been to shift construction

work towards the Private Sector.

1.14 Foreign Contractors

There has also been a significant shift towards the employment of

foreign contractors for certain projects, where local firms have

not had the technology and the capacity to handle such large con-

tracts, e.g. A significar.t segment of construction activity pertain-

ing to the AMP has been assigned to fereign contractors. This has

helped to relieve the domestic resource constraints pertaining to

manpower and other construction resources. The work sharing prog-

rammes (though to a limited scale) have enabled the -local construc-

tion industry to work side by side with foreign firms and gain

experience in handling projects of this nature'and the use of modern

technology.

The infrastructure development programmes and construction activity

in general have spanned across most sectors of the economy, both

rural and urban, agricultural and manufacturing. In particular,

the AMP and the Million Houses Programme have brought direct benefits

to the Rural Sector and helped to reduce the sectoral imbalances

that have plagued many other developing countries.

c) TRENDS IN CONSTRUCTION EMPLOYMENT

1.15 Employment Levels

Employment in the construction industry accounts for approximately

7% of total employment in Sri Lanka, while employment in agricul-

ture and manufacturing account for 68% and 17.8% respectively*.

However, the actual numbers employed have fluctuated with changes

in demand in the Construction Sector which have followed cyclical

variations in the 1970s and 80s (see Chart 1). The period 1978

to 1980 saw an unprecedented increase in construction activity with

* Source: Central Bank - Socio-Economic Survey 1981

8

the growth rates in construction going upto 28% (1978) and 21%

(1979)*. During this period the level of employment expandedfrom 100,000 (1977) to 116,000 (1978) showing growth rates inemployment of 16% (1978)* and 20% (1979). This period of fullemployment in the industry and the continuing demand resultedin a sudden escalation of construction sector wages (see Chart2). The period 1978 to 1983 saw average wages in construction

for both skilled and unskilled workers increase to 289% of its-1978 value#.

1.16 Migration

The domestic boom in construction coincided with the massiveoil financed demand for expatriate labour for development activityin the Gulf States of the Middle East. This resulted in a largeexodus of skilled workers from Sri Lanka to the Middle East,approximately 60% of whom were construction workers (see Table3). In 1981, an estimated total of approximately 50,000 workersmigrated overseas - a flow large enough to make a significant

impact on the local labour market". During this period, therewas serious concern that labour shortages in the ConstructionSector would jeopardise the successful implementation of develop-ment programmes of the Government (Medium Term DevelopmEnt Plan1979-83). The CITP was a response to this situation whichdemanded an effective and speedy prograkme of skill developmentand training in the Construction Sector.

On the domestic front, the boom period-ended in 1982 as a resultof cut backs andre^phasing of Public Sector Investment Programmes(see para 1.06). The effect of this was compounded by the down-turn in Private Sector investment and construction in the touristindustry which followed the ethnic disturbances of 1983.

with regard to employment levels, however, Middle East migration

which continued unabated acted as a relief valve to alleviate

* Source: Central Bank Reports 1978 to 1986.

+ Appraisal Report

# Source: Central Bank - Economic & Social Statistics ofSri Lanka - Price & Wage Statistics -1983.

I Smpact of Out & Return Migration on Domestic Employment inSri Lanka: A Preliminary Analysis". The Asian EmploymentProgramme (ILO/ARETP) 1985

9

domestic unemployment. Estimates made in 1981 placed the absorp-

tion co-efficient at approximately 1/3rd the annual increment in

the labour force.

1.17 Migrant Returnees

In recent times, with the fall in oil prices, there has been a

levelling off and a deceleration of construction activity in the

Middle East and a reduction in demand for construction workers.

On account of investment lags and the 2nd Phase involving the

operation and maintenance component of projects, the demand for

expatriate labour will continue although of a different mix.

The impact of fiigrant returnees on local employment has not been

assessed as no comprehensive studies have yet been undertaken.

Two case studies conducted in Ja-Ela and Minuwangoda in 1984*

found that of the migrant returnees in these two areas, only

8-to 9% had been absorbed into paid employment whlXe 25% t%ad

gone into self-employment. A substantial number was reported to

be living on savings while the bulk of migrants, upon returning

to Sri Lanka, had not gone back to their pre-migration labour

market pursuits, and a high percentage did not engage in direct

economic activity upon return. However, it is not possible to

draw general macro conclusions from these two micru studies.

The continuation of Public Sector Investment Programmes in Sri

Lanka has helped to sustain the level of employment in coistruc-

tion activity. In the period 1979 to 1983, employment increased

by a further 89,000 from 140,000 (1979)+ to 229,100 (1983)#,

thereby showing an average annual increase in employment of 12.7%.

1.18 New Entrants

With regard to new entrants to the construction industry, the

Tracer Surveys pertaining to CITP Trainees give an insight into

+ Source: Atukorale & Balasuriya (1984) from "Impact of Out 8Return Migration on Domestic Employment in Sri Lanka:A Preliminary Analysis" (ILO/ARTEP) 1985.

* Appraisal Report - Sri Lanka Construction Industry TrainingProject - 1981

# 1983 figure as reported in Basic Data - Preparation Report for2nd CITP

° Based on Census Data.

10

the absorption patterns. In the three surveys 1983, 1984 and

1985, of the number actually interviewed, those employed in the

construction industry were75%, 73s and 85% respectively. However

a sicnificant percentage of the sample, 27%, 22% and 22% respect-

ively,cwere not available for interview.. The Tracer Studies also

indicated that the highest level of unemployment was among Electri-

cal Wiremen (30%) and the lowest among Masons (7%). Hence, the

determination of the skill categories in assessing training needs

will have to be carefully worked out in the future in order to

maintain a balance in employment opportunities for those completing

the CITP Course.

1.19 Female Employment

Female participation rates in the Construction Sector have always

been low and this phenomenon has not shown any significant change

in recent times, apart from supervisory grades where female parti-

cipation in training program'mes has been somewhat hetter.

(also see para 1.22).

d) SOCIAL CHARACTERISTICS AFFECTING THE CONSTRUCTION INfUSTRY

1.20 Stratification

Sri Lankan society is stratified along traditional lines of family

connections, inherited wealth, political influence, and occupation,

with a higher status being accorded to doctors, engineers, accounte

ants, government officials and those with academic and professional

qualifications. Construction workers and those labouring in the hot

sun are assigned a lower status despite the fact that, in recent

years, many construction workers have amassed "small fortunes" as

a result of migratory employment in the Middle East. A skilled

construction worker, however affluent, is called a "baasunnehe"

(a term of address for a skilled craftsman), while an office

worker or professional is called a "mahatmaya" (or gentleman).

Previously a "baasunnehe" was attired in a sarong while a "mahat-

maya" wore trousers. In recent times, the trouset has become a

common form of attire, cutting across all social barriers, and

though this has helped to reduce the external manifestations of

11

class, the lower status accorded to manual workers continues.

1.21 Effect on the Construction Industry

These attitudes have adversely influenced entry into the const--

ruction industry and have stunted the development of progressive

career patterns. Small construction firms in particular have

suffered as a result, out there are examples of large construction

firms too which have been characterised by poor professional

standards*.

Dr Ganesan *cites the case study of poor progress on site, which

he attributed to inefficient organisation, low productivity, poor

site-management and supervision, and the desire for short term

Profit maximization by the Contractor (despite favourable terms

being given). Thus, the lack of progressive career prospects and

the low social status accorded to construction work, plus the vola-

tile nature of work caused by fluctuations in demand, have all con-

tributed to prevent the ablest young men from seeking a career in

the construction industry.

The CITP, during the project period, incorporated certain elements

into their Programme to improve the traditional image of the cons-

truction worker,by providing their trainees with a hard hat, gum

boots, gloves and apron. The National Skill Certificate which has

been introduced as a result of CITP will also help to enhance their

status. These measures, however small, plus the higher earning

capacity of construction workers in recent times e6ay help in improv-

ing their social status (at least gradually) in the future.

1.22 Female Participation

With regard to female participation in the construction industry,

this has been largely confined to the casual, unskilled grades.

In 1971 there were 1.2% females in the industry, which rose to 5.60%

in 1983#, but this increase too has been mainly in the unskilled

categories. For example, on small construction sites, it is quite

common to see a line of women passing mortar pans of loose aggre-

gate, concrete,or carrying bricks on their heads.

* Dr S. Ganesan, ICTAD, in association with the Worl4 Bank -

"The Development of National Contractorp" Part I - August 1986.

; Source: "Preparation Report - Second Construction In4ustryTraining Project"

12

'thic alac reflects the low capitalt labour ratio found in the

Local construction industry. The number of females trained under

the CITP Programme during the period June 1981 to December 1986 was

tcnly 326 out ot a total of 37,742, or 0.9% of the total, confirming

the? view that construction work is a "man's job' and not one off..

lng career prospects to ambitious females. In the Supervisory Grades,

however, the enrolment rate has been higher, viz. 189 of the total

1478 Supervisors were females.

1.23 Traditional Training

The traditional approach to training in the Construction Industry in

Sri Lanka has been one of Master Craftsman and Apprentlce, where the

apprentice learns the skill by helping the Master Craftsman over a

period of years. Skills have also been passed down from father to

son. These arrangements have been casual and not subject to any

'institutional monitoring' or certification of standards.

The formalisation of training instructions may take more time to

make a significant impact on these age-old practices which still

continue in the rural areas where the level of technology is low.

Judging by the increase in construction employment (both Skilled

and Unskilled), which rose from 100,000 in 1977 to 229,100 in

1983* and the numbers fully trained in both CITP and non-CITP

institutions, it is likely that traditional methods of training

still continue.

e) PROJECT DESCRIPTION & OBJECTIVES

1.24 The Governuent of Sri Lanka (COSL), when formulating the 1979-1983

Medium Term Development PlAn, realised that the capacity of the

domestic construction industry required expansion in order to

accommodate the work envisaged in the Plan. In response to this

situation, an IDA Mission (December 1978) discussed a Prograsme

* Source: "Preparation Report - Second ConstructIon Industry

Training Project"

13

of Technical Assistance with the GOSL, leading to a Project

designed to increase the output and capacity of the construc-

tion industry. During the subsequent Identification and Prep-

aration Missions, GOSL and IDA agreed that this Project should

concentrate on specific areas where significant improvements

would be possible. It was then decided that this Project would

concentrate on increasing the supply of skilled manpower and

management expertise in the industry. In 3une 1980, GOSL

retained the British Council as Lead Consultants to provide

Technical Assistance for the Project Preparation, and the Project

was appraised by IDA in June 1980. Implementation started in

June 1981. The original Credit Agreement between GOSL and the

IDA was signed for a period of 3 years from June 1981 to June

1984. Subsequently, the project period was extended to December

1986.

1.25 Objectives

The Project Objectives were to increase the supply of trained

manpower and to improve the level of technical management

expertise so that the construction industry could better meet

the demands of Sri Lanka's Investment Programme. The Project

was designed to:

E Establish an unified modular training system for

construction related trades which would supply the

industry with a significant number of workers

trained to limited but recognised skilled levels

in the least possible time. This process would

both improve the productivity and earning capacity

of existing construction workers, and provide job

opportunities for new entrants from both rural and

urban backgrounds

- Improve the use and maintenance of equipment by

training Operators and Mechanics;

- Increase the effectiveness of work,planning and

supervision by training middle aneC upper manage-

ment staff in Contract Procedures, Site Management

14

and Quality Controls

- Strengthen the Agencies and Institutions involved

in training for the construction industry, and

Improve the methods and procedures relating to the

industry.

1.26 Project Components

The Project consisted of:

- Training for about 45,000 new entrants in basic

construction skills to a standard where they would

be able to carry out simple building-craft tasks

under supervision;

- Training for about 9,600 experienced construction

workers to upgrade their existing skills;

- Training for about 1,800 Mechanical Equipment

Operators and Mechanics in correct operation and

maintenance. procedures;

- Training for about 900 Work Supervisors, who have

little or no site experience, in simple procedures

of supervision and quality control;.

- Training for about 80 experienced Senior Works

Managers in improved Work Planning and Management;

- Technical. assistance to establish and run the Train-

ing Programmes and to advise GOSL on technical and

policy issues concerning the construction industry;

- Supply of equipment and materials necessary for

training.

1.27 Expected Benefits

The benefits from the Project may be divided into short term and

long term benefits.

15

1.28 Short Term Benefits

In the short term, the training of skilled craftsmen in the

categories mentioned would have the following beneficial

effects. It would

* Relieve the immediate resource constraints pertain-

ing to the supply of skilled workers in the construc-

tion industry and enable the realisation of the

Government's medium term economic objectives which

had a heavy bias towards the Construction Sector;

* Ease the pressure on construction costs in general

and the escalation of labour costs in particular.

(in 'the period 1979 to 1980 labour costs increased

by approximately 35% among all categories of construc-

tion labour - see Table 2);

* Reduce youth unemployment and under-employment by

providing avenues for further training and skill

acquisition, and better prospects of gainful employ-

ment thereafter;

* Result in an immediate enhancement of work opportu-

nities in the Middle East, for those who were freshly

trained and those re-trained. This benefits the

individual in terms of his much improved earning cap-

acity,and the country, as a whole, in terms of increased

invisible exports. A Sri Lankan working in the Middle

East sends approximately 80 to 9Q% of his earnirgs back

home. The foreign exchange remittances of Middle

East workers constitute the second largest source of

foreign exchange earnings next to tea exports. In

1983 alone, private transfers amounted to Rs.6.8

billion, next to Rs.8.3 billion earned from tea exports*.

These remittances have alLs helped to boost the level

of domestic savings.

* Source: Central Bank Reports, 1984 to 1986.

16

1.29 Long Term Benefits

* The strengthening of the infrastructure and institutional

base pertaining to construction training will result in

a long term improvement in the effectiveness and

productivity of Training Institutions. This would

lead to a permanent enhancement of the national con-

struction training capability;

* The improvement of the level of skills and technical

know-how that would result from the Project would

have beneficial effects on Infrastructure Development

Programmes in particular, and economic growth in

general;

* The upgrading of skills will result in an enhancement of

living standardz of those construction workers and

would contribute to an increase in the National OAt-

put and Income;

* Institutional Training, the upgrading of supervisory

skills and the improvement of technology would prom-

ote career development in the construction industry.

In the future, this could enable local firms to

undertake larger projects which are now being handled

by foreign firms.

17

CHAPTER-I1

PROJECT IMPLEMENTATION

a) OVERVIEW

2.01 Agreement was reached between the GOSL and the Bank, even

before the Credit Agreement became effective, to retain the

British Council (BC) as a co-ordinating agency to provide

technical assistance for the preparation of the Project.

The BC, in turn, made use of the services of a Specialist

from the Construction Industry Training Board (CITM) of the

United Kingdom (UK). The Project was approved by an IDA

Mission in June 1980. The Credit Agreement was signed in

June £981 and became effective on 19th August 1981.

The effective date for completion of the Project was expected

to be December 31, 1984, (Development Credit Agreement 1130-CE.

signed between the Democratic Socialist Republic of Sri Lanka

and the International Development Association), though the

actual date of completion has been as late as December 1986.

b) MANAGEMENT

2.02 Secretaries' Committee

The responsibility for implementation of the Project was borne

by the Ministry of Local Government, Housing & Construction

(MLGHC) through the Secretaries' Committee for the Construction

Industry (SCCI) which was established as a Co-ordinating and

Steering Committee, assisted by the Construction Industry Special-

ist of the Technical Assistance Team. This SCCI, under the

chairmanship of the Secretary, MLGHC, was responsible for the

overall operations of the industry in not only the Public

Sector, but also in the Private Sector so far as Government work

was concerned.

18

2.03 Project Call

The day-to-day administration and control of the Project was

in the hands of a Project Cell set up by the MLGHC under a

full-time Project Director (vide Annex 2). It received specific

guidance from the SCCI on Policy and Planning, and from the

National Training Committee for the Construction Industry

(NTCCI) - a Sub-Committee of the SCCI - on training matters.

2.04 National Steering Committee

A National Steering Committee for the Construction Industry

(NSCCI), with representatives from all spheres of activity in

the Construction Industry, looked into methods and procedures

for improving the output and efficiency of the industry, includ-

ing Construction Contract Procedures and Management. This

Committee had five (5) Specialist Sub-Committees to study the

Construction Industry in detail and suggest ways and means of

improving the efficiency and produictivity of the Industry.

Following were the five Sub-Committees:-

i) Sub-Committee on Re-establishing Tender Procedure,

Grading Systems for Contractors, Conditions of

Contract and Specifications;

ii) Sub-Committee on Training for Middle and Upper Manage-

ment, Quantity Surveying and Quality Control;

iii) Sub-Committee to deal with the subject-area of-

Contractors' Associations;

iv) Sub-Committee on the relationship between Design-

Economics and the Construction Industry;

v) Sub-Committee on Strategic Planning for the Cons-

truction Industry

19

c) INTER-MINISTERIAL CO-ORDINATION

2.05 The implementation of the CITP Programme involved several

Ministries and different Sectors as the Construction Industry

spans across almost the entire spectrum of-"governmental

activity. Effective and speedy implementation therefore nec-

essitated close co-ordination between these different Minis-

tries. This co-ordination was achieved through the appointment

of a Committee consisting of the Secretaries of several Minis-

tries, which was vested with the responsibility of formulating

policy for the implementation of the Project (see Chart 4).

The Secretary, Ministry of Local Government, Housing & Construc-

tion, (MLGHC), acted as Chairman, and the Ministries involved

were the

- Ministry of Youth Affairs & Employment

- Ministry of Plan Implementation

- Ministry of Higher Education

- Ministry of Lands & Land Development

- Ministry of Mahaweli Development

- Ministry of Labour

these Ministries fall into two groups:

a) those directly involved in Training Programmes and

b) those having a large construction component in

their Investment Programmes

The Ministry of Youth Affairs & Employment falls into the first

category. The National Apprenticeship Board, which was established

in 1973, came under this Ministry and was charged with the respon-

sibility of standardization, selection of trainees, testing, certi-

fication and registration of workers, Supervisors and Specialists.

The Department of Labour, under the Ministry of Labour, operates

two permanent and 130 mobile centres offering course in Masonry

and Carpentry.

The Department of Rural Industries, under .the Ministry of Rural

Development, operates 75 centres to train carpenters.

20

The Department of Higher Education has 25 technical institutes

offering a variety of courses related to Construction.

The MLGHC established the Centre for Bousing Planning & Build-

ing as a Training Centre for Construction Management.

The activities of these Ministries which were directly Involved

in the implementation of the CITP Programme were co-ordinated

and monitoredthrough the Secretaries Committee, Since the .mp-

lementation of the Project was to be achieved through existing

institut.ions,these Ministries played a key,role.

The Ministries which did not have existing institutional arrange-

ments for training, but which nevertheless had large construction

components in their Work Programmes, offered on-site training

facilities for CITP trainees. In particular, the Million

Houses Programme under the MLGHC' provided training for approxi-

mately 12,000 trainees during the project period.

Throughi effective inter-ministerial co-ordination executed through

the Secketaries Committee, efficient and speedy implementation of

policies was made possible. In particular, the Secretaries Comm-

ittee provided an useful forum for the formulation of policies

and was an avenue through which new ideasicould reach thq highest

policy making body - the Cabinet - and bet.ratified as Official*

Government Policy.

d) PHYSICAL IMPLEMENTATION

2.06 Training Divisions

The Physical Implementation of' the Project was effected through

the medium of the following'four TrainihebIuirisions:-

i) Artisan Training Division

ii) Construction Supervisory & Management-;TraLizng Division

iii) Construction Equipment Operators atkebhanicis TrainingDivision

iv) On-Site Training Division

2.07 Artisan Training

Artisan Training was provided according to a modular system,

whereby trainees could progress from a lower level to a

higher level in a series of short courses sandwiched with

periods of job experience. All craft trades had two modules -

a Basic Skills Module (BSM) and an Advanced Skills mule

(ASH). The BSM consisted of two parts, viz. 10 weeks of

institutional training and 10 weeks of controlled on-the-job

training, whilst the duration of the ASH varied from 6 to 8

weeks, depending on the areas of skill. The ASM did not have

on-the-job training as the trainees were recruited from the

industry.

The Aftisan Trades covered were:-

a) Masonry

b) Carpentry

c) Electrical Wiring

d) Plumbing

e) Steel Fixing and Barbending

The Institutional Training Courses for Artisans were conducted

at the Sri Lanka Technical College and the Polytechnical, Junior_ * n t M * i. :1 '

Technical and Affiliate Technical Institutes of the Ministry of

Higher Education, and at the Pre-Cast Yard of the State Engineer-

ing Corporation at Ekala. A list of the Training Centres, together

with the Courses conducted at each place, As.t.ahown-in Annex 3,

whilst Annex 4 shows the location of the Training-Institutes on

a map of Sri Lanka.

During the course of the Institutional Training, the Artisan

Trainees were given the opportunity to practise their skills under

simulated site-conditions, including working at heights.

Each Artisan Trainee was given a Hand Book containing information

to reinforce instructions in practical activities and for use as

a Reference Book both during and after training.

The Training Allowance paid to Artisans during their Institutional

Training was as follows:-

Basic Skills Course .. Rs.12/- per day

Advanced Skills Course .. Rs.30/- per day

On completion of the Basic Skills Training Course, each successful

trainee was given a tool-kit free of charge for use in tne craft

in which he was trained.

The training was continuously assessed during the entire institu-

tional period, and those who successfully completed the training

were issued a Certificate of Attendance. Thereafter, the trainees

were placed in industry for on-site training.

2.08 Training for the Million Houses Programme

The CITP developed a Training Programme to provide basic skills

to members of the community who were selected for the proposed

one Million Houses Programme of the Government, to build their

own houses on a self-help basis. This Programme was carried out

for the masonry and carpentry trades, in addition to the programmes

implemented at the Technical Institutes referred to above.

The training under this Programme was established at "Gramodaya

Mandalaya" (smallest administrative unit of local government)

level. Trainee masons and carpenters were selected from among

employable persons in the relevant "Gramodaya Mandalaya" Divisions

and given on-the-job training at housing work-sites in that Division.

An experienced mason and an experienced carpenter were selected

from the locality to be employed as trainers, in consultation

with the "Gramodaya Mandalaya" of the area. A modular training

pattern was adopted whereby the trainees could proceed from one

module of training skills to another, following the sequence of

activities in the Construction Schedule.

The trainees who completed the Million Houses Programme were given

the opportunity of following a more advanced course in the respec-

tive trade at a Technical College.

2.09 Supervisory & Management Training

Supervisor and Management Training was imparted in two parts -

institutional and on-site. The Supervisory and Management Train-

ing Division was responsible for this training which covered the

following fields:-

a) Training of Construction Supervisors

b) Training of Upper Managers

C) Training of Middle Managers

d) In-Service Training for Quantity Surveyors

2.10 Construction Supervisors' Training

The institutional training for Supervisors was spread over a

period of 8 weeks initially. The First Phase of 8 weeks initial

institutional training was followed by 48 weeks on-site work

experience. Thereafter the trainees were brought back to an Ins-

titute for their Second Phase of institutional training of 4 weeks.

These institutional training courses were conducted at five

Training Centres, viz.

i) Sri Lanka Technical College, Colombo 10

(later replaced by the International Training

Centre for Rural Leaders, Embilipitiya).

ii) Centre for Housing, Planning & Building (CHPB),

Colombo 2.

iii) Polytechnical Institute, Kandy.

iv) Hardy Senior Technical Institute, Amparai.

v) Polytechnic-1l Institute., Jaffna.

The Courses consisted of classroom lectures in English, with addi-

tional demonstration exercises in the field and site visits.

Tape/Cassette Recorders were used to improve the trainees' knowledge

of the English language. They were also provided with manuals and

visual aids to reduce time spent in taking down notes, etc.

Subjects covered at the Institution were:-

a) Building Construction

b) Drawing

c) Levelling, Setting Out and Surveying

d) Quantity Surveying

e) Works Management

f) Water Supply and Drainage

g) Engineering Materials

h) English

The following Training Allowances were paid3-

a) During Institutional Training Period - Rs.600/- p.m.

b) During On-Site Training Period - Rs.300/- p.m.

2.11 Upper Level Construction Managers' Training

For Upper Level Construction Managers,3 to 4-day Seminars were

organised, covering the following areas:-

a) The Construction Industry and the National Economy;

b) Project Formulatioa, Investment Appraisal Techniques,

Capital Decision;

c) Availability of Funds and Lending Policies - 8ahks

and Other Institutions;

d) Principles of Project Management - Appreciation of

Available Techniques and their Applications;

e) Estimating and forecasting Project Costs and Project

Cost Control;

f) Inflation Accounting;

g) Management Concepts, Science of Decision-Making and

Information Systems;

h) Administration of Contracts, Forms of Contract, Con-

tract Law and Contract Procedures;

i) Professional Obligations and Codes of Conduct.

2.12 Middle-Level Construction-Managers' Training

Middle-level Construction Managers were provided S to 6 weeks

part-time courses consisting of lead lectures, group discussions,

case study, audio-visual presentations related to Construction

Procedures, Techniques and Technology..

The cdntent of the Middle Management Course was as follows:-

a) Role of the Construction Industry in the Economy

b) Personnel Management

c) Construction Planning

25

d) Feasibility Studies and Project Formulation

e) Contract Procedure

f) Financial PLanning

g) Value Engineering and Construction Economics

h) Management Information Systems

i) Quality Control

j) Progress Control

k) Management of Construction Equipment

1) Network Analysis

m) Site Layout and Office Organization

n) Project Work

2.13 Equipment 2perators'/Mec.4anics' Training

Construction Equipment Operators/Mechanics were provided both

Institutional and On-Site Training by the Construction Equipment

Operator/Mechanic Division. The areas covered were in respect

of Heavy Equipment and Light Equipment respectively.

The duration of the institutional and on-site training periods

were as follows for the different trades:-

Institutional On-Site

Heavy Equipment operators 1 months 150-200 machines hours

Heavy Equipment Mechanics 6 " 3 months

Light Equipment Operators 2 weeks 2 weeks

Light Equipment Mechanics 5 months 3 months

A Training Centre was established at Galkulama(Anuradhapura) to train Heavy

Construction and Earth-Moving Machinery Operators. It is under-

stood that this Training Centre is the only Centre of its type

in the South Asia Region.

Light Equipment Operator Training Courses were conducted at the

State Engineering Corporation (SEC) Workshop at Peliyagoda,

Heavy Equipment Mechanics had their training at the following

places:-

26

i) f;EC Workshop, Peliyageda.

ii) Department of Machinery & Equipment Workshop,

lMatmalana.

iii) :State Development & Constnuction Corporation

(SO & CC), Ratmalana.

iv) Department of Highways, Regional Workshops, at

Kandy and Jaffna, and Central Workshop, Ratmalana.

Light Equipment Mechanic Training Courses were conducted at:-

SD & CC Workshop, Ratmalana.

SEC Workshop, Pellyagoda.

There was also an Advanced Mechanic Training Course. This was a

structured, modular theoret.cal course on the design features and

operational aspects of assemblies and systems of Heavy Vehicles.

The Course consisted of the following modules:-

a) Use and care of hand tools and workshop safety

b) Compression ignition engines and fuel injec-

tion equipment

c) Lubrication and cooling systems

d) Vehicle types and layout - braking, steering

and suspension systems

e) Transmission systems

f) Automatic electrical equipment and accessories.

The duration of individual modules varied from I to 3 weeks.

The total duration of the Course was 3 months, About 10 to 12

participants normally attended a module.

Participants were employed and drawn from two sources: Techni-

cal Officers and Skilled Workmen who wished to update!their

knowledge. A few trainees from the basic c;.urses were alsQ

given the opportunity to attend the Advanced Courses.

Institutional training was conducted in Sinhala. All subjects

were covered by lectures in class with practical experience in

the field. Training Manuals were supplied to trainees free of

27

charge in each subject for reference during the institutional

as well as the on-site training.

All Equipment Operator/Mechanic Trainees, other than nominees

from Industrial organizations, were paid a Training Allowance

of Rs.140 per week.

2.14 Training Modules & Monitoring

All modules for the institutional training courses and on-site

training standards for all trades were prepared by local con-

sultants drawn from the National Apprenticeship Board, the Min-

istry of Higher Education and the Labour Department, in associ-

ation with the CITP and the foreign consultants engaged on the

Project.

Monitoring of on-site training was carried out in close collab-

oration with the Department of Buildings and the N.A.B. Each

trainee was issued a "Daily Diary" and a "Work Experi4nce Sched-

ule" which laid down what the trainees were expected to do during

their training period. District Training Officers and District

Engineers of the Buildings Department paid frequent visits to

the site to check on the progress and planning of training acti-

vities with the employers.

The first 10 weeks of the on-site training was funded by the Project,

on completion of which period trainees were expected to undergo

a further 30 weeks of on-site training, which was not funded by the

Project. However, monitoring by District Training Officers and

District Engineers continued during this period as well.

2.15 National Skill Standards & Trade Tests

Training Programmes conducted by various Ministries and Institutions

differ in levels of kill, training methodology and curriculum for

the same trade. This lack of uniformity is aggravated by the pau-

city of facilities for trade testing. Employers find it difficult

to ascertain the skills.of new recruits, particularly those from

formal Institutional Training Programmes.

In order to overcome this situation, the Project has developed Nat-

ional Skill Standards in respect of Masonry, Carpentry, Plumbing,

28

Electrical Wiring, Steel Fixing and Barbending, Construction

Site Supervisors, Construction Equipment Mechanics and Construc-

tion Equipment Operators. These Skill Standards were prepared

by a Committee representing training organizations and employers,

both in the Public and Private Sectors.

National Trade Tests have also been developed by the Project to

assess the competence of construction employees according to Skill

Standards. Although the development of National Skill Standards

was initially handled by the Project, the tmplementation and sub-

sequent development activities have been handed over to the N.A.B.

e) IMPROVEMENTS TO EXISTING INSTITUTIONS

2.16 At the very outset, for commencing the training activities of the

CITP, the Ministry of Higher Education (MHE) agreed to suspend

the 2-year Crafts Courses in Masonry and Carpentry which were

conducted at the Technical Institutes, To start with, the Masonry

and Carpentry Courses at JTI, Ratmalana, Mattakkuliya and Homagama

were suspended on a ttial basis in 1981. After that, in 1982 the

2-year Training Courses in Masonry and Carpentry were suspended at

all other Technical Institutes as well and the Workshop facilities

were offered to the CITP for conducting short-term training courses

in these trades. The MHE also directed the staff attached to 9

selected Technical Institutes to conduct a Course in Electrical

Wi.:ing, and those of 5 selected Technical Institutes to do a Course

in Plumbing, whilst a new training course in Steel-Fixing and Bar-

bending was introduced at two Technical Institutes. These Training

Courses were drawn up by a group of local consultants attached to

the MHE, NAB, Department of Labour (DOL) and the CITP. The necess-

ary equipment and training materials for implementing the Training

Courses were provided by the CITP direct to the Technical Institutes.

The Teaching and Support Staff attached to the Technical Institutes

remained under the general supervision and administrative control

of the Director, Technical Education of the MHE.

The Centre for Housing, Planning & Building (CHPB), which was est-

ablished under the MHLGC in 1979, was made use of by the CITP to

provide training in Construction Management. Courses were conducted

29

at threts levelss-

i) A 4-week Course on Construction Project Man-

agement for Senior Staff

ii) An 8-week Course for Middle Management, Inspec-

tors and Superintendents

iii) A 12-week Course for new recruits to technical

grades

The Courses have been designed to train staff in SitepOrganization

and Management, appropriate to their level of authority.

f) BUILDING OF NEW FACILITIES

2.17 Establishment of New Training Centre & Conduct of Courses

A new Training Centre was established at Galkulama, Anuradhapura,

to train Heavy Construction Equipment Operators, as no such faci-

lities existed in the country before commencement of the CITP.

This Training Centre was fully equipped with all types of con-

struction and earth-moving equipment, valued at around 2 million

US dollars, and provided the opportunity t.o train Operators on

the following machines:-

a) Crawler Tractors - with ripper and winch attachments

b) Wheel Loader - with backhoe

c) Motor Traders

d) Hydraulic Excavators

e) Rope Excavators

f) Self-Propelled Scrapers

g) Rear Dump Trucks - 16-ton capacity

hk) Mobile Cranes

i) Plant Transporter

The following Training Courses were conducted at the Anuradhapura

Centre:-

a) Broad-based Heavy Earth Moving Machine Operators

Programme on Dozer, Loader plus Excavator or Grader

to a basic employable skill.

30

b) Specialised Courses at the Employer's request on

any individual type of machine identified.

Special Courses in Plant Management and Utilization for Super-

visoryand Middle-Level Management Personnel were also made

available.

In addition to training Equipment Operators, the Training Centre

has been equipped to widertake the testing of Operators to

nationally-accepte4 standards.

A 'Construction Unit' has also been established-within the frame-

work of this Training Centre to supplement the institutional

training of Plant Operators, and to undertake outside jobs such

as land-clearing and reclamation, irrigation tank rehabilitation,

earthwork schemes, etc., which incidentally provided a sizeable

amount of income.

2.18 Project Monitoring & Evaluation System

A Project Monitoring and Evaluating System, acceptable to the IDA,

has also been established and three independent Tracer Studies were

carried out in 1983, 1984 and 1985 to evaluate the performance of

trainees and their affiliation to industry. An Impact Assessment

Study has also been conducted in 1987 to ascertain trainee atti-

tudes, quality of output, wage patterns, etc.

g) PROCUREMENT OF EQUIPMENT

2.19 The procedure, as per Schedule 3 of the Development Credit Agree-

ment, had been adopted for the procurement of equipment.

Items estimated to cost less than the equivalent of US $.5000

each were procured in accordance with the prudent shopping pro-

cedures.

For items in excess of US $.5000, international competitive bidding

procedures had been adopted. The Tender Documents setting out the

Specifications,and other terms were forwarded to the Association

prior to making it available to the prospective suppliers. By

31

publication of advertisements in trade journals and other rele-

vant media, the suppliers were invited to quote on the specified

Tender Documents which had to be purchased at a fee. The tenders

received were evaluated and the basis of selection indicated to

the Association prior to awarding the Contract.

The suppliers of these items were settled direct by the Associa-

tion on receipt of documentation from the Project Director.

A complete list of items of equipment procured is given in Table 4.

h) TECHNICAL ASSISTANCE

The technical assistance was provided by qualified expatriate

personnel through the British Council, W.S. Atkin International,

and Foster Wheeler of the United Kingdom. The details of the

personnel are as per Table 5. A Summary of the Appraisal Estimate

and the Actual Deployment are as follows:-

TECHNICAL ASSISTANCE

Appraisal* Actual DifferenceMan-Months Man-Months M4an-Months

Construction Industry Advisor 36 15 21

Senior Training Manager 36 12 24

Equipment Operations Advisor 72 a5 (13)

Equipment maintenance Advisor 36 6 30

Technical Management & Super-vision Advisor 36 is 21

Masonry Advisor 72 52 20

Carpentry Advisor 72 40 32

Plumbing Advisor 18 - 18

Electrical Training Advisor 18 28 (10)

senior Craft Training Advisor 66 (66)

Apprenticeship Advisor 39 (39)

32

Appraisal Actual DifferenceMan-Months Man-Months Man-Months

Eqyipment Machinery Train-ing Specialist - 53 (53)

Management Training Advisor - 9 ( 9)

Senior Contract Advisor - 12 (12)

Financial Advisor - 12 (12)

Site Engineer - 13 (13)

Senior Highways Engineer - 13 (13)

Senior Traffic Engineer - 9 ( 9)

Others 34 (34)

432 538 (106)

The Actual Period of Technical Assistance was 45 man-years compared

to the estimated 36 man-years. The extended two%&year period was

the main reason for the difference of 9 man-years (25%).

--) FULFUIMENT OF COVENANTS (Ref: Development Credit Agreement of 1981)

2.21 The Credit (Ref: Sec. 2.01 in Credit Agreement)

The Credit Agreement provides for a SDR 10.9 facility covering

all foreign costs and a percentage of local costs of training

materials and locally procured equipment. The actual withdrawal

of credit amounted to SDR 10 million, which is less than the

value in the Agreement. Devaluation of the rupee was one of the

reasons for the shortfall in the withdrawal.

(Ref: Sec. 2.03)

The procurement of equipment had been in accordance with the

procedure laid out in Schedule 3.

(Ref. Sec. 2.04)

The Closing Date of the Project was extended to December 31,

1986, from December 31, 1984.

2.22 EXECUTION OF THE PROJECT

(Ref. Sec. 3.01)

The Project has been carried out through the Ministry of Local

Government, Housing & Construction.

(Ref. Sec. 3.02)

The Consultants were recruited with the consent of the Association.

(Ref. Sec. 3.03)

The equipment had been adequately insured incident to the acquisition,

transportation and installation.

The goods and services financed out of the proceeds Of the Credit

were used solely for the Project.

(Ref. Sec. 3.04)

The Project has furnished to the Association Reports, TraiAing

Programmes, Contract Documents and Procurement Schedules of the

Project.

The Project has maintained records and procedures adequate to

record and monitor progress of the Project,

The IDA disbursements extend upto 6 months from the Closing Date,

i.e. June 30, 1987.

(Ref. Sec. 3.05)

All land required for the Project has been provided by the

Borrower.

(Ref. Sec. 3.06)

A Project Cell, under a full-time Project Director, acceptable

to the Association, has been functioning throughout the

project period, vide para 2.03.

A National Training Committee for Construction Industry has

functioned as required, vide para 2.03.

(Ref. Sec. 3.07)

a) Standardization Procedures for selection of trainees,

registration of workers, etc., were started in April

1981 and completed in.stages for different Grades.

b) Contract Specifications, Procedures and Documentation

were completed by the end of December 1983.

(Ref. Sec. 3.08)

(Ref. Sec. 3.09)

The trainees have been provided with allowances during the

Training Period adequate to meet their out-of-pocket expenses.

(Ref. Sec. 3.10)

Fully complied with.

2.23 CTHER COVENANTS (Ref. Sec. 4.01)

a) Cormplied with

b) Th Project has maintained appropriate accounting records

and the Annual Financial Statements had been audited by an

independent auditor, the Auditor-General. The accounts

upto the end of 1985 had been audited.and the Draft Report

j

of the Auditor-General had been forwarded on December

4, 1986, slightly beyond the target date of end-September

1986. These Reports and the Accounts have been forwarded

to the Association. The Draft Accounts for 1986 are ready

for auditing.

J

CHAPTER 111

PROJECT COSTS a FINANCING

a) APPRAISAL ESTIMATES

At appraisal, the estimated total project cost was US $.25.03

million and the foreign exchange component US $.10.81 million,

representing 43% of the total project cost (see Table 6).

b,) FINAL COSTS

These are presented in Tables 7 and 8. Details of data in Table

8 are further presented in Tables 4, 8.1, 8.2 and 8.3.

A comparison of the actual cost and the appraisal estimates of

the project are as under.

Appraisal Actual Difference %

Total cost in Rupees Million 450.4 475.6 +25.2 + 6

Total cost in USD Million 25.03 18.75 - 6.28 -25

c) EXPENDITURE BY CATEGORY

The categorised expenditure as presented in Table 7 is summarised

below:

SUMMARY OF TOTAL EXPENDITURE BY CATEGORY

(US $ Million )

CATEGORY APPRAISAL ACTUAL

Amount % Amount

Fixed Assets 3.46 14 4.00 21

Training Materials 8.80 35 4.95 26

Technical Assistance, TrainingCosts & Overhead Expenses 12.77 51 9.80 53

TO0 T A L 25.03 100 18.75 100

37

In spite of the extension of the closing date to December 31, 1986

(from December 31, 1984), resulting in an increase in the cost due

to annual inflation, the project cost in Rupees was only slightly

above the appraisal estimates. However, the cost in US Dollars

was well below the appraisal estimates which could be attributed

to the following reason:-

- Unexpected fall in the Rupee exchange rate against

the US Dollar, during the period 1981 to 1986

(Note 2 Table 7)

(1981: Rs.19/50, 1986: Rs.28/02 - a 44% depreciation)

d) TECHNICAL ASSISTANCE COSTS

The estimated cost of technical assistance was Rs.74 million* com-

pared to the actual cost of Rs.114 millionr whicl resulted in an

increase pf 40 million (54%). The increase could be attributed

to the following:-

- Highways Training which was not included in the

Appraisal Estimates.

- The 25% increase in the man-years from the Est-

imates

- The considerable fall in the rupee exchange rate

against the US dollar during the period under

review

The actual technical assistance costs represent 24% of the total

project cost.

e) FINANCING & DISBURSEMENT

The International Development Association (IDA) entered into an

agreement with the Government of Sr' Lanka in 1981, extending a

credit facility to an equivalent of SDR 10.9 million as per Credit

No.1130 CE. The US Dollar equivalent at that time was 13.5 million.

The remaining local cost, as per the Appraisal Estimates amounting

to US Dollars 11.5 million, was to be met by the Government of Sri

Lanka.

*Source: Staff Appraisal Report - March 3, 1981 (Table 9)

+ Table 8.2

38

Disbursements from the proceeds of the Credit were agreed on

the following basis:-

a) Equipment s 100% of the cost of foreign expenditure

for directly imported items,

100% of the ex-factory price of locally

manufactured items, and

80% of the purchase price of locally

procured items.

b) Training Materials : 50% of expenditure (80% from November

1983)

c) Technical Assistance : 100% of expenditure

Expenditure incurred on the Project Preparation Fund (PPFY was to

be refinanced by the Association in the first year of the Project

to a maximum of US $.240,000 equivalent.

Applications for reimbursement/disbursement under this Credit were

made from 1981 and were fully documented. The closing date was

extended to December 31, 1986, and as per the Agreement, it enabled

the applications for reimbursement to be forwarded up to the next

six-month period, i.e. June 30, 1987.

The IDA disbursements and the actual receipts from the Government

of Sri Lanka are as per Tables 9 and 10 respectively and are summ-

arised below:

ESTIMATED & ACTUAL SOURCE OF FINANCE

(USD Million.)

APPRAISAL ACTUALGOSL IDA GOSL IDA

TOTAL 11.5 13.5 12.6 11.4

46 54 53 47

39

CHAPTER IV

PROJECT OPERATING OUTCOME

a) OVERVIEW Attainment of Project Objectives

4.01 Objective 1 Training about 45,000 workers in basicconstruction skills and upgrading about9600 workers in advanced constructionskills.

These targets were laid down in the Appraisal Report in 1979-

80, when the construction industry in Sri Lanka attained un-

precedented high growth rates, reaching its peak in mid-1981.

Thereafter, the growth rate began to decline and, in concurr-

ence with the IDA, GOSL decided to re-assess the training

needs. The first assessment was made by the NIBM in 1982 and

the training targets for Artisans were reduced to 23,900 without

specifying whether the output should be at basic or advanced

levels. The Project achieved a figure of 20,669 for Artisans,

in addition to an output of 12,143 on the Million Houses

Programme.

4.02 Objective 2 Training about 1800 in EquipmentOperation and Maintenance

As a result of the NIBM's re-assessment, this target for train-

ing Equipment Operators and Mechanics was increased to 2830.

The actual output for these trades has been 2331, which is con-

sidered close enough.

4.03 Objective 3 : Training about 900 in Works Supervisionand Quality Control and about 80 inImproved Works Planning and Management.

These targets have been revised to 1000 andl50 respectively in

the NIBM's re-assessment. The actual output figures against

these revised targets have been 1499 Works Supervisors and 1100

Works Managers - not to mention the benefits derived by 179

Engineers of the Road Development Authority on a short Orienta-

tion Course. The objective has been achieved well above

expectations.

40

4.04 ObJective 4 : Strengthening the Agencies and InstitutionsInvolved in On-Site Training and Trade-Testing.

The Tracer Studies reveal that the on-site aspects of the Train-

ing Programmes carried out at over 500 work sites were successful.

However, we feel this has to be confirmed by National Trade Tests,

but upto the end of December 1986 only 6730 craftsmen and construc-

tion supervisors from amongst both CITP and non-CITP trainees had

been tested by the NAB. Though the Project has developed Trade

Tests for all the relevant Trades, the Trade-Testing Mechanism

has to be improved aud expanded within the N.A.B. for more exped-

itious testing of workers who complete their training.

4.05 Objective 5.: Improve Methods and Procedures Relatedto the Construction Industry.

The Project has been able to produce manuals on how methods and

procedures in the industry sh,uld be improved. These are the

Conditions of Contract for building and Civil Engineering Works,

Guidelines for Tender Procedures, and several Technical Specifi-

cations which have been accepted as national documents. Govern-

ment construction agencies have been instructed to abide by these

documents which are being continuously updated. However, it is

difficult to measure whether instructions are being complied with,

in the short term. It will require a system of constant monitor-

ing and feed-back to make sure that the documents are used by both

the Public and Private Sectors. This will have to be a long-term

objective to be carridd out in the future. Please see Annex 5

for list of documents produced by 'he Project.

Post-Graduate Courses in Construction Management have been set up

under the auspices of the University of Moratuwa, where Degree

Courses in Quantity Surveying have already commenced. In addition,

a Post-Graduate Course in Quantity Surveying is also to be set up

at the same University.

The Construction Contractors Association in Sri Lanka has been

established with links to the Builders'Employers' Federation of

the U.K. and the International Federation of Asia & Pacific

Contractors' Association. The Association is being assisted to

41

develop itself into a powerful organization so that it could

represent the interests of all construction contractors in Sri

Lanka.

A Report on Design Economics has been produced which should prove

useful in the economic design of buildings and other Civil Engin-

eering structures.

A Report covering the subject of Strategic Planning in the Construc-

tion Industry is to be implemented shortly.

b) TRAINEE ENROLMENT & OUTPUT

The eligibility for enrolment to the different Training Courses

varies with the Trades, as set out below:

4.06 Artisans - Basic Skills Module

Both males and females over 17 years of age are eligible for training.

Applicants for Carpentry and Masonry do not require any special

educational qualifications. However, they must be physically fit and

be able to work at heights,

Applicants for Electrical Wiring must have a minimum of 6 Passes at

the GCE (0) Level in Science subjects, or equivalent qualifications.

Applicants for Plumbing, Steel-Fixing.and Barbending should have read

at least upto Grade 8.

4.07 Artisans - Advanced Skills Module

Trainees who have completed 10 weeks of Basic Skills Institutional

Training and all skill modules in the Works Experience Schedule during

the 40 weeks of on-site training are eligible to apply.

In addition, those who are already employed in the industry as Skilled

craftsmen, including the self-employed craftsmen, can apply. Those

employed in the industry have to be recommended by their employers.

4.08 Construction Supervisory Training

School-leavers applying for this training should be between 18 and 22

years of age on the Date of Application. They should possess the GCE

(0) Level Certificate with Passes in 6 subjects, including 3 Credits

obtained at not more than two sittings, in addition to Passes in Sinhala/

Tamil/English - any one of which should have been the medium of instruc-

tion at the GCE (0) Level; and a Credit Pass in Arithmetic/Commercial

Arithmetic/Mathematics; and a Credit Pass in Physics/Science.

42

OR

Equivalent or higher qualifications as judged by the NAB.

They should also satisfy the misUimum standards of physical fitness

laid down by the NAB.

In the case of Supervisors already employed in the Construftion

Industry, age and experience will be considered in lieu of acad-

emic qualifications if a contractor agrees to pay the trainee

during institutional training. Otherwise three years experience

in a reputed establishment and three Passes at the GCE (0) Level,

including Mathematics, in addition to a working knowledge of

English, are essential requirements.

4.09 Management Training

The two Schemes drawn up for Upper Level and Middle Level Managers

are as follows for eligibility to receive training:-

Upper Level : Those engaged in positions of policy-

formulation and decision-making;

Middle Level Those attached to work sites and in

charge of one or more projects, with

responsibilities in Project-formulation,

Feasibility Studies, Project-financing,

Contract and. Construction Management,

etc;

4.10 Heavy Equipment Mechanic Course (Basic)

a) Nominees of Industrial Organizations (Public and Private

Sectors:

i) Should be employed in an industrial organization

where Heavy Construction Equipment is used;

ii) Should have worked as a semi-skilled or Helper-

Mechanic for a minimum period of 2 to 4 years on

related equipment;

43

b) Others:

Persons who have completed the Mechanic Training Programme

of course-duration one year or more, conducted by the MHE

or Labour Department or any other reputed training establish-

ment.

4.11 Light Equipment Mechanic Course (Basic)

a) Nominees of Industrial Organizations (Public and Private

Sectors)

b) Others:

(Same as for Heavy Equipment Mechanic Course, given above).

4.12 Heavy Equipment Operator Training

a) Nominees of Industrial Organizations (Public Sector):

i) Should be employed in an organization where

heavy construction machinery is used;

ii) Should possess Driving Licence to drive a

motor coach;

iii) Should have a minimum of 2 to 3 years exper-

ience as a semi-skilled Operator or a

Cleaner/Greaser of the machine type identi-

fied for undergoing training.

b) Others:

Those who have completed the Driver Training Prog-

ramme conducted by the NAB.

4.13 Light Equipment Operator Training

a) Nominees of Industrial organizations (Public and Private

Sectors):

i) Should be an employee of an organization where

light construction equipment is used;

44

ii) An affidavit from the employer that the nomineeis either handling light construction equipmentor would be engaged on such equipment after train-ing, would be advantageous.

b) Others:

By application.

The recruitment and registration of trainees for on-site train-ing was handled by the On-Site Training Division;of the CITP.This was done in co-ordination with the NAB and the Departmentof Exildings.

4.14 Registration of Trainees

All trainees have been given a National Registration Number.A computer-based registration system has been adopted to coverall skill areas and all construction workers.

It hr- not been possible to collect the numbers enrolled fortraining in the different trades from the documents made avail-able to us, Even the Quarterly Progress Reports which gavethis information at the start of the Project adopted a differentfonmat of reportinq later on, without giving the detailedparticulars of the number enrolled, the number who startedtraining and the number who completed the training. However,the drop-out percentages from the samples analysed in theseveral Tracer Studies are available for reference.

4.15 EnrolNent of Artisan Trainees

Artisan Trainees were recruited from three sourcqsx-

i) Registrants at the District Engineers' Officesof the BuildingsDepartment - Nominations made bythe D E (Buildings);

ii) Advertisement by NAB;

iii) Phase I of the CITP - 1 Million Houses Prograwme

ft -,

Candidates were interviewed by the Principals of the Technical

Institutes of the MHE, and 20 'rainees selected for each course

of trainina.

4.16 Enrolment of Supervisors

Supervisors were enrolled from amongst

i; Nominees of the Buildings Departmentr

ii) Nominees of the NHDA, various Agencies under

the Mahaweli Authority, including the Private

Sector with (i) and (ii) comprising 50% of tha

total intake;

iii) Balance 50% through the NAB from amongst cand-

idates who applied for vacancies of Special

Apprentices in the NAB and failed to get

selected, and

iv) By newspaper advertisement.

4.17 Enrolment of Equipment Operators/Mechanics

In the case of Equipment Operators/Mechanics, 75% of the recruits

were nominees of Industrial Organizations (Public and/or Private)

and the balance 25% from Others, as detailed out above.

4.18 Trainee Output

The actual Output Figures for the different Trades, Supervisors and

Managers as at 31st December 1986, have been furnished by the ICTAD

(Successor to CITP), These have been summarised in Table 11 for

comparison with the Targets given in the Appraisal Report and the

Revised Targets applicable to the Project Period, as glven in the

NIBM Reports for the Assessment of Training Needs (Studies of March

1983 and December 1985).

It is clear from the Table that the Actual Output is Bar in excess

of the Revised Targets even as an average for each year of the

Project Period. It has also to be remembered that in addition

no less than 8839 Artisans were receiving trainiAg on the Million

Houses Programme at the close of the Project in December 1986.

The average number trained per year would be even more if, at least,

part of this figure of 8889 is taken into account.

46

It could therefore be rightly concluded that, in terms of numerical

production, the Project has been successful.

4.19 Quality of Training

As for Quality of the products and their application to industry, etc.

our comments on the Tracer Studies and Impact Assessment Study which

follow later in this Report, would be appropriate.

The CITP trainee had a higher pass rate in comparison with non-

CITP trainees (vide para 4.46).

4.20 Cost of Training

The average overall cost per trainee works out to Rs.16,613, if

those trained on the Million Houses Programme are also taken into

consideration. Otherwise, the cost per trainee is of the order of

Rs.24,500. This appears reasonable as the capital costs have not

been depreciated long enough for the opening phase of the Project;

and we are reliably informed that at least one other similar

Project, conducted by another agency in Sri Lanka, has recorded

Unit Costs more than double this amount!

c) SHORT-TERM IN-SERVICE TRAINING COURSES

4.21 Fellowship Programmes

The first Fellowship Programme was implemented through the British

Council (BC). Here, the fellowships were offered for the study of

Technical Education and Vocational Training available to construc-

tion industry workers in the UK. The BC arranged for a total of

27 man-months of fellowships at a cost of US $.0.12 m.

The second component of the F&llowship Programme was arranged by the

Project through Diplomatic Missions in the Sbuth-East Asian

Rdgionv in the form of study tours for a few key members of the

Project Staff to enable them to familiarsie,themselves with the

Technical Education and Vocational Training Systems in the coun-

tries of the region. A total number of 7 man-months were deployed

47

at 4 total cost of Us $.0.06 m for this Programme.

4.22 Instructor Training

A crash-programme had to be developed, with World Bank approval,

to upgrade the technical skill level of the Instructors, and several

short-term training courses were designed and implemented by the

Project. The Courses were cut down to a. maximum duration of 5 days

at a stretch, as the Instructors could not be kept away from their

Training Centres for longer periods at a time without disruption

to the on-going programmes. The cost of this training was minimal

as the Instructors were paid only their daily subsistence and

travelling for attending these Courses,though they had to attend

Programmes on more than one occasion to cover the full content of

the upgrading course.

A total of 152 Instructors participated in a total of 46 short-

term upgrading courses in Masonry, Carpentry, Elect±dcal Wiring,

Plumbing, Steel Fixing and Barbending, conducted by the Artisan

Training Division of the CITP.

The Supervisory and Management Training Division also conducted two

Teacher Training Course§for 20 teachers in 1984.

4.23 On-Job Training

Short course on Methodblogy/Management Systems for I;-Plant

Training Officers of the Buildings Department and the NAB, to

enable them to organise and monitor the On-Job Training Programme

that was in operation islandwide, had to be developed, Sone 10

of these Courses were conducted,

Inaddition, a Training Officers' course was developed in conjunc-

tion with the NIBM for about 20 Officers of the Buildings Depart-

ment. Thereby, a nucleus of well-trained officers had been stationed

in the 24 Districts who were able to effectively operate the On-

Job Training Phase of the Project.

Eleven Instructors were trained in heavy equipment operation by the

Operator & Mechanic Training Division of the CITP.

48

4.24 Training of Administrative & Technieal Staff onthe Million Houses Programme

In addition to the Skills Training Programme arranged for Masons

and Carpenters on the Million Houses Programme,% as referred to

earlier in this Report, the CITP undertook to train the imple-

menters of the Programme as well. Accordingly, the Project

engaged the services of a group of Consultants from the Develop-

ment Planning Unit of the University College, London, and the

14assachusetts Institute of Technology. This Team conducted five

Regional Training Workshops for the Administrative and Technical

Staff in the Rural Sub-Programme at district-level. Thereby 350

persons received training.

4.25 Training in Maintenance of Buildings 6 Electrical Installations

The CITP developed and conducted short training courses for Build-

ing Maintenance Operators to start with, followed by similar short

courses on a pilot basis for Electrical Installation Maintenance

Operators and Maintenance Supervisors.

4.26 Training for Highways Department (now Road Development Authority)

The CITP designed and implemented five short-term Training Courses

for the following:-

Chief Engineers

Executive Engineers

Technical Officers

Road Maintenance Agents

Skilled and Semi-Skilled Workers

4.27 South-Asia Regional Conference

The CITP sponsored the South-Asia Regional Conference on Skilled

Manpower Development along with the World Bank in January 1984.

This Conference proved to be an useful forum for exchanging ideas

and experiences between personnel involved in Technical Education

and Vocational Training in the South-Asia Region. The partici-

pants at the Conference were delegations from Bangladesh, Bhutan,

Pakistan, Sri Lanka and from 10 Multi-lateral and Bilateral Agencies.

49

d) DEVELOPMENT OF CURRICULA & OTHER TRAINING MATERIALS

4.28 Curricula for Artisans

As mentioned earlier too, the curricula for Artisan Training

and Equipment Mechanic & Operator Training had been developed

by a Team of expatriate and local experts. In 1985, the curr-

icula for training in the different artisan trades were assessed

by the Association of Construction Contractors of Sri Lanka

(ACCSL) as to their relevance for meeting the local needs of the

Construction Industry, and were found to be satisfactory. in

the case of the curricula drawn up for the Equipment Mechanics,

a Review Committee of local Equipment Mechanic experts had been

commissioned to assess their relevance to the needs of Heavy and

Light Equipment mechanics and, based on the Committee's recomm-

endations, the curricula had been improved upon.

4.29 Curricula for Managers

In the area of Management Training too, an analysis has been made

by the CITP/ICTAD of all the relevant evaluations which had bebn

collected from participants from the start of the Project. Thereby,

specific problems within the Construction Industry had been iden-

tified, and a Sri Lanka specific software package for Construction

Planning had been developed. New Courses had been designed in

Construction Management for upper and middle-level Engineers by the

Project. Courses have been identified and course-curricula developed

for the National Water Supply & Drainage Board also. A Management/

Supervision Course was developed for the Road Development Authority

too.

4.30 Development of Training Material

The Project designed and developed a considerable number of low-cost

training manuals in English which were translated to Sinhala and

Tamil. These were issued to. Trainees and Instructots to supplement

the skill training they received on the Training Programmes. These

Training Manuals have become effective reference material, produced

at low cost, capable of being reproduced even after IDA support for

the Project was over. These Manuals have been produced for both

50

institutional and on-job training separately. An islandwide

on-job training system had to be-set up,.using staff of the

Buildings Department to assist with the recruitment, monitor-

ing institutional training, placement of trainees in the

industry, monitoring practical in-plant training, and ensuring

job-rotation and the payment of training Allowance, etc. For

this purpose, the necessary management systems were developed

and produced in manual-form.

e) SPECIAL STUDIES

ASSESSMENT OF TRAINING NEEDS

4.31 Introduction

During the lifetime of this Project from June 1981 to December

1986, two Studies for the Assessment of Training Needs in the

Construction Industry have been carried out by the National Ins-

titute of Business Management (NIBM), at the request of the

Ministry of Local Government Housing & ConstructioiG (MLCHC).

The first Study commenced on 15th September 1982 and NIBM pub-

lished its Report in March 1983, whilst the second Study, directed

more towards the second Construction Industry Training Project

(CITP) or Institute for Construction Training & Development (ICTAD)

Project, commenced on 15th September 1985 and NIBM issued its

Report in December 1985. The 1982/83 Study gave the training

requirements yearly for the period 1981 to 1988,tand the 1985

Study the Manpower Requirements for the period 1986 to 1990.

4.32 Background to the Studies

The first CITP Programme,which was started in June 1981 with

World Bank assistance, was directed to meet the demand for

skilled construction workers, brought about by the rapid expan-

sion in construction activities in Sri Lanka, combined with the

higher exodus of skilled workers to the Middle East. After the

Project commenced, it was felt by the CITP Authorities that the

Assessment of Construction Staff to be trained, as given in the

World Bank Appraisal Report, was on the high side, and a more

accurate assessment was called for from an independent body.

51

Accordingly, the NIBM was entrusted with the assignment of assess-

ing the training needs of construction workers in Sri Lanka in

September 1982, with World Bank approval.

In 1985, the CITP Authorities felt that it was opportune again to

review the projected training requirements of manpower made in

March 1983, in the light of the changes that had taken place in

the Construction Industry and in the economic environment, specially

after the ethnic disturbances of July 1983. It was &&so felt that

the quality of workmanship of the existing manpower-stock was also

not up to the acceptable standards and that there was a need for

re-training existing staff already in employment, Therefore, a

further study was assigned to the NISM to review and update their

figures on these lines.

4.33 Summary of Work Undertaken

i) 1982/83_Study

a) Identification of basic skills required in the

Construction Industry,

b) Clarification of Construction Projects accord-

ing to certain categories of work.

c) Identification of major construction work-origi-

nators in Sri Lanka, together with Cost of

Construction for 1981 (the base year) and Esti-

mated Cost from 1982 to 1988.

d) Developing standard ratios for converting Con-

struction Costs to Manpower Requirements by

obtaining data on Construction Activities.

e) Studying the contribution made by Institutions,

other than the CITP, in the training of con-

struction workers.

f) Studying the contribution made by non-institu-

tional Training Schemes.

g) Studying the exodus of construction workers to

the Middle East and the loss of staff due to

retirement.

52

h) Preparing two Scenarios to indicate the most

likely investment profiles for different cat-

egories of work from 1982 to 1988.

i) Designing a computer simulation model to assess

Manpower Requirements and the need for CITP-

training for each year during the period 1982

to 1988.

ii) 1985 Study

a) Expansion of list of Construction Projects

earlier developed to include categories of

work with significant investment levels and

manpower development profiles.

b) Inclusion of a Special Mason Trade for special

finishes to buildings as a separate skill

category.

c) Increasing the number of work-originators

to cover organizations such as the Road

Development Authority, etc.

d) Estimating the cost of construction for each

type of Project undertaken by the appropriate

work-originators from 1986 to 1990.

e) Revision of standard ratios for converting

Construction Costs to Manpower Raquirements

for each work-category.

f) Developing standard ratios for converting Con-

struction Costs to Manpower Requirements for

new categories of work, such as Building

Maintenance.

g) Studying the contributions made by Institu-

tions, other than the CITP, for training of

construction workers from 1981 to 1985, and

making projections from 1986:to 1990.

h) Revising the model used for estimating the

numbers trained by non-instituional Training

Schemes.

53

i) Studying the exodus of construction work-

ers to the Middle East and making projec-

tions for such exodus during 1986 to 1990.

J) Revising the model used for estimating loss

due to retirements.

k) Studying the re-entry of construction workers

to local employment after returning from

abroad.

1) Preparing a Scenario to cover the most likely

investment profile for different work cate-

gories for the period 1986 to 1988.

m) Developing a computer simulation model to ass-

ess Manpower REquirements and the need for

CITP tnaining from 1986 to 1990.

n) Assessing the Re-training Requirements of

skill categories already in employment.

4.34 Summary of Results

The two Scenarios worked for in the 1982/83 Study were:

i) Estimated Investment Profile, based on probable

workloads - (Scenario 1)

ii) Estimated Investments based on 6% growth each

year - (Scenario 2)

The projected training requirements arrived at by the two Scen-

arios from 1981 to 1986 are annexed (vide Tables 12 and 13).

The corresponding figures obtained from the 1985 Study, based

on the Estimated Xnvestment Profile only (Scenario A) are

given in Table 14 for the year 1986 alone, the last year of

the Revised CITP Programmes, for purpose of comparison. It

is evident that the total number to be trained in 1986 accord-

ing to Scenario A is 5582, which compares very favourably

with the yearly-average of 5576 under ScenAr4o 2 a%d iis close

enough to the Annual Average of 5478 prrt1yad Ot qyen under

Scenario 1. Therefore, the twq Stuien tor UTaining Needs

conducted by the NIBM, appear quite reaUlstic and accurate in spite of

54

the estimated projected figures used therein. The December 1985

Report also gives the Re-training Requirement for Manpower already

at work for the 5-year period 1986 to 1990. The average-yearly'

Re-training Requirements are also shown in Table 14. The Total

Anhual Retraining Requirement is found to be of the same order as

the Training Requirement for 1986,

4.35 Comparison of NIBM Targets with Actual Outputs

The total manpower trained on the CITP Programme as at 31.12.86,

advised by ICTAD, is 37,742. This number includes a total of

12,143 trained on the Million Houses Programme which got off

the ground in 1984. The yearly-average of the manpower trained

during the period 1981 to 1986 is 6862 per year, which is far

above the Revised Targets of the NIBM of nearly 5600 per year.

4.36 Tracer Studies

During the lifetime of the Project, three Tracer Studies have

been carried out. The first Study was conducted in March 1983

by Mr 0. Balaram, Statistical Officer of the Ministry of Local

Government, Housing & Construction (MLGHC) with a view to estab-

lishing the employment pattern of the CITP Trainees. This

Report is dated June 20, 1983. The Secondy Study on Former

Trainees trained by CITP was also carried out in February 1984

by Mr Balaram, who designed the Survey and Questionnaire and also

briefed the District Staff of the Department of Census & Statistics,

whilst the Survey Results were analysed by both the Statistical

Staff of the MLGHC and the Staff of the CITP. The Report is

dated September 1984. The third Tracer Study has been carried

out in March 1985 by the Department of Census & Statistics at the

request of the CITP of the MLGHC. The Report has been published

in September 1985.

4.37 The March 1983 Survey

This Jurvey was carried out at the time when the CITP,which was

started in June 1981, was training approximately 6000 construc-

tion workers per year. Courses were conducted at a Technical

Institute or Training Centre, followed by a period of on-site

training, during which period the trainees were paid an allow-

ance. The duration of the Course varied from 20 weeks for

Artisans to 60 weeks for Supervisors.

The main objectives of the Survey were to ascertain:-

i) Numbers of trainees remaining affiliated to the

Construction Industry after their funded on-site

training was completed.

ii) Changes in employment which occured after the Train-

ing Period

iii) The numbers employed and reasons for this

iv) wage-patterns

v) Variations according to District and Trade

vi) 'rrainer't imprpssions of the suitability of their

The method adopted was to select 500 trainees at random from a

list of 2279 to obtain a fair geographic distribution throughout

the Island, approximately in conformity with the numbers trained,

in Government Departments and Corporations.

They were grouped into different survey-districtsand interviewed

personally by Statistical Officers, each of whom had been assigned

only one District, and briefed in Colombo on the details of the

Questionnaire Form. In this manner, the samples covered all 24

Districts of the Island and all the Artisan trades included in the

Appraisal Report.

Of the above sample of 500, it was found that

273 were still affiliated to the Industry

94 were continously unemployed

133 were not questioned on their employment-patterns as they had

left during funded on-site training or were not traceable due

to incomplete or inaccurate addresses.

500

56

Of the 367 who were questioned, 75% were still affiliated to

Industry, and 25% were continuously unemployed. The Study there-

fore concludes that the Project was successful overall. However,

it has to be noted that, of the total sample, only 73% was avail-

able for questioning, the balance 27% having left during on-site

training or not being traceable.

It was also seen from the Study that Plumbers and Electrical Wire-

men were poorly paid and a high percentage were out of employment.

Carpenters have been most successful in becoming self-employed.

The wage pattern of Supervisors, as given in the Report, appears

misleading in that their maximum wage rate of Rs.30 to Rs.40 per

day is below that of Masons and Carpenters - maximum Rs.50 to 60

per day, whose work they are supposed to supervise!

4.3e The February 1984 Survey

The rate of training about 6000 per year had been maintained up to

this time, partly at an Institution or Training Centre and partly

on-site. The course-duration ranged from 6 weeks for Operators to

60 weeks for Supervisors. The Objectives of this Survey and the

methods adopted were basically the same as those of the previous

one, and the Survey took place in February 1984.

This time, a 10% sample was arrived at from a total of approximately

9000 trainees. It is mentioned in the September 1984 Report (page 4

Section 1.7.2) that the 413 people who had been interviewed in the

first Survey were re-surveyed, but this number should have been

correctly only 367. Some modifications were made to the questioning-

process to try and avoid ambiguities which had arisen in the

first Survey. A special section was included for Equipment Opera-

tors. The scope of the Survey remained the same.

Of the total sample of 895, It was revealed thats

517 were still affiliated to the Industry

183 were continuously unemployed

and 195 were not available for questionJng

The Survey therefore points out that 73% of those questioned were

57

affiliated to the Industry. However, as pointed out in the

first Survey, only 78% of the total sample was available for

questionLng, the balance 22 not being traceable.

There does not appear to have been a significant difference

in the results of the two Surveys, except that the unemployment

figures for Supervisors has increased from 18% to 48%. The

training for Supervisors could therefore be reduced for some

time. '

The Survey also revealed that the general rate of permanent

employment was low. A new trade of Steel Fixer/Barbender had

been introduced since the last Survey, but ln view of the high

level unemployed after training, the Recoiinendations made in

the Study to combine this trade with the Mason, appears accept-

able, though this work could be entrusted to Structural Fitters

engaged in Steel Work Erection as well. The low level of affil-

iation of Electrical Wiremen and Plumbers continued in this

Survey too. The reason may probably be due to their not acquir-

ing the correct skills and continuing to work on their own, as

pointed out in the Report, and the matter needs further investi-

gation and remedial action.

Questioning trainees of about the same period through their career

in both these Surveys was definitely a drawback. The aim should

have been to find out whether the employment-patterns had been

consistent or not over the period the Courses had been run, as

rightly pointed out in the Study.

4.39 The March 1985 Tracer Study

From June 1981 to March 1984, the CITP had trained 15,000 construc-

tion workers.

The main objectives of this Survey were the same as before in add-

ition to identifying any further improvements required to the

Training Programme. The scope of the Survey was also the same as

before, the subject-coverage too being the same or similar.

The Survey covered all the trainees who were trained from June 1981

till March 1984 under the CITP. In the case of Light and Heavy

58

Equipment Operators, the information was collected by a postal

questionnaire. For all other trades, formal iricerviews were

held. The Survey was carried out in March 1985.

For the select'on of the sample-trainees, the computer print- outs

giving the list of trainees who were trained under different trades

in batches at various Institutions and Training Centres were used

as the frame. About 10% of the trainees (i.e. 1409) were thus

selected. This sample consisted of two sets of former trainees.

The first set of the sample comprised 509 trainees who were found

affiliated to the Industry at the last Survey. The second set con-

sisted of 900 trainees, selected at random from the test, as given

below:

For Artisans : 30% from those who had their institutional train-ing in 1982

60% -do- 1983

10% -do- 1984

For Supervisors: Trainees not attached to Government Organizations

For Equipment Mechanics and Operators: 50% from new recruits(and balance), 50% from those sponsored by Public and PrivateOrganizations.

Of the 1409 trainee-samples, only 1094 or 78% were available for

questioning, and 933 of them were affiliated to the Industry.

Therefore, the percentage employed was 85% of those from whom Reports

were received. This is a marked improvement from the previous Surveys.

The unemployment was highest amongst the Electrical Wiremen (30%),

whilst the Mason trade had the lowest (98).

It is also revealed that on an average a permanently-employed trainee

had a monthly income of Rs.1135/-. This appears to be a fairly rea-

sonable wage. Even a self-employed trainee had an average daily

earning of Rs.5l/-, which is considered quite attractive for a crafts-

man with Class III skills.

The unemployed trainees had the following reasons to give for their

unemployment:-

a) Difficulty to find jobs

b) Lack of adequate experience

c) Inadequate training - both institutional and on-site

d) Lack of proper Certificates

59

(a) may be solved by the CITP Authorities getting involved

in finding jobs for those who pass out;

(b), (c) and (d) reflect on the standard of training imparted

anid is worth examining in detail.

If proper standards are laid down in consultation with the

employment agencies and enforced, (b) and (c) should not arise,

and if Trade Tests are conducted immediately on termination

of training without levying a fee of Rs.50/- (as now prevailing),

there will be an incentive for all trainees who complete their

training to appear for the test. The fee of Rs.50/- may be

levied from those who pass the Trade Test, only for the purpose

of issuing the Certificates referred to at (d).

According to the Survey, it appears that about 98% of the trainees

in all trades, other than the Operators, were males, and that

there were only 17 female trainees - 16 Supervisors and one Mason.

This indicates that there is no attraction for this sort of job

for women, probably due to the arduous nature of the field-work

involved, including working at heights.

The CITP should make arrangements for all the trainees to be

visited by Training Officers regularly, at least oncea month,

as the Report points out that at least 16% of the trainees had

not been visited at all during the period of their On-Site

Training,

4.40 Conclusions

The affiliation rate has recorded a marked increase in 1985 com-

pared with 1983 and 1984. This is very encouraging and should

be improved upon by CITP Authorities who should get directly

involved in the employment of their passed-out trainees.

High affiliation rates of trainees from Institutions in Badulla,

Kegalle, Beliatta, Galle and Kuliyapitiya, indicated that there

are adequateemployment opportunities in those areas. However,

the development of other areas should be closely monitored when

recruiting trainees so that there is no over-production which

could lead to unemployment and discontent. In this regard,

great care has to be taken when recruiting trainees to the

bO

Junior Technical Institute at Homagama and Mattakkuliya and

the Technical College at Maradana, as these Institutions have

almost a&ways recorded much lower affiliation rates than others.

Further, measures should be introduced to ensure that trainees

give correct addresses and that this information is updated

regularly. This would enable trainees to be located for purposes

of Tracer Surveys and monitoring and evaluation. This would also

be important where the Apprenticeship Agreement has been signed

by Sureties, and where penalties have been laid down for breach

of contract.

IMPACT ASSESSMENT STUDY

4.41 Introduction

This Impact Assessment Study has been conducted by the Department

of Census & Statistics (DCS) at the request of the World Bank

Mission, which visited Sri Lanka in February 1987, and the ICTAD.

Earlier, the CITP had carried out a Pilot Study in the Colombo

District with a limited coverage. The DCS Study too has its limit-

ations due to want of a complete and current sampling-frame.

The Study has been extended to cover 7 Districts, including the

Colombo District, with a view to incorporating both Urban and

rural districts. The Draft Report has been issued in July 1987.

4.42 Objectives of the Survey

i) To establish the supply and demand position and

operating wages for construction industry skills

ii) To compare CITP Trainees with those trained on

other Programmes regarding attitude to work,

quality of work, safe working ptactices, use of

tools and equipment, etc.

iii) To assess the distribution of craftsmen holding

National Trade Test Certificates Grade III, work-

ing in organizations

iv) To obtain information for reviewing and evaluat-

ing the CITP Training Programme

61

4.4;3 Sampling Frame

A list of both Public and Private Organizations, where CITP

craftsmen were employed, was prepared by the Field Staff of

the Buildings Department. Information on the deployment of

Construction Supervisors and Equipment Operators and Mechan-

ics was available with ICTAD. This data gave the basic inform-

ation for the sampling-frame, viz. number of CITP trainee-

workers and their trades in each of the Organizations,

4.44 Sample Selection, Field Organization, Data Processing, etc.

The following 7 Districts had been selected, viz. Colombo,

Kandy, Galle, Hambantota, Kurunegala, Badulla and Ratnapura,

covering both the urban and rural sectors. The sample for

each District was allocated in proportion to the number of

units of population in each District, with a minimum sample-

size of 30 to each District. The total number of population

nits for the 7 Districts amounted to 894 and a sample of 343

; =1it-vw tx-i d-airvn. Of thn.e 343 sampled organizations and

ynrsc,as, it. had '.en po.sibln tc' Iocnts only 251 units. It

had not been possible to trace the balance.

Employment Data had been collected as at lot May 198?, whilst

the month of March 1987 was considered as the Reference Month

regarding the number of working days. The Data Processing

work had been carried out manually.

4.4 5 Manpower Supply Constraints

Shortages of manpower, which led to difficulties in organiza-

tions completing or undertaking job-assignments, were reported

from all the sampled Districts in respect of different trades.

The percentage of organizations reporting shortages varied from

17% for Kandy and Kurunegala to 39% for fambantota, with an

overall average for the total sample of 251 units, of 26%.

It was also revealed that a significant number of Firms had

reported vacancies in masonry, carpentry, electrical wiring,

steel-fixing and plumbing as a result of a shortage of skills

in these categories during the period 1983 and after.

62

1/3rd of the Firms had reported difficulties in recruiting

adequately skilled workers in Hambantota, and 1/4th of all

Firms in Ratnapura had reported the same issue. The quality

of output in these organizations would thereby have been ad-

versely affected.

4.4.6 Skilled Labour Component of Project-Costs

The skilled labour-component of Project Costs has varied from

District to District, but the average for all the sampled

Districts can be taken as 21 to 39%.

4.4 7 Supervisors' Assessment of Quality of Output of CITP Trainees

The following characteristics were chosen for this purpose:.-

Productivity

Attitude to Work

Quality of Work

Planning Work Area

Safer Working Practices

Use of Tools and Equipment

Raw Material Usage

Awareness of Developments in the Trade

These characteristics of CITP Trainees were evaluated against

'other worker' groups as 'better than average', 'average' and

'below average'.

In 4 of the 7 Districts, the CITP Trainees were found to be more

productive, whilst in the other 3 the Supervisors held an opp-

osite view.

In all the sampled Districts, the CITP-trained craftsmen have

been rated better than other workers in their attitude towards

work by the Supervisors who were questioned.

The sampled Supervisors have classified the CITP-trained as

giving a slightly better output-quality than other workers.

The same was true about planning their work-areas also.

63

The Supervisors have assessed that the CITP-trained are signi-

ficantly better in adopting safer working practices than others.

Regarding the use of Tools and Equipment, the evaluation has been

broadly similar to the preceding characteristic.

About Raw Material Usage, the CITP-trained have been assessed

better than the average workers, though there is a wider inter-

district variation in the evaluation.

The CITP-trained are better than others in their Awareness of

Developments in the Trade, according to the sampled Supervisors.

Here too, the inter-district variations in assessments are quite

large.

Thus, according to the overall assessment of sampled Supervisors,

the CITP-trained have been rated higher than the products of

other Training Programmes. It can therefore be established that,

in general, the CITP-trained craftsmen possess better and more

useful attributes and characteristics than those trained in other

ways.

The data recorded has also revealed that the CITP-trained employees

have been rated by their Supervisors as being more interested in

their trade and in undertaking innovation work and learning new

skills, compared to other workers.

It has also come to light from the Impact Assessment Study that

60% of the CITP-trained craftsmen were in receipt of wages equi-

valent to that of other workers and 6% of them were receiving

higher wages. In Colombo, 2/3rd of the Firms had paid the CITP-

trained wages equivalent to that of other workers, whilst 1/3rd

had paid lower wages. In Kandy, Galle, Hambantota and Ratnapura

more than 2/Sths of all employers had paid the CITP-trained

wages lower than that paid to other workers. It is therefore

evident that quite a significant number of CITP workers have

received wages lower than that of other workers. This may be

due to lack of adequate experience of CITP-trained in their

trades. Or, it may be that small contractors utilize their

services as unskilled workers on low wages and allow them the

opportunity to pick up the skills in the trade.

64

The Survey also elicited information about Deficiencies apparent

in CITP Trainees. Their worst characteristic was found to be

their indifference to work and not being punctual. Insufficient

practical traininq and lack of technical knowledqae eomhined

with inexperience in the use of equipment, constituted signifi-

cant weaknesses reported on by sampled Supervisors.

The Site Supervisors were also asked to state the criteria that

should be adopted in the selection of CITP Trainees. The follow-

ing criteria were highlighted by them:-

i) Level of Education - at least Grade 8,:.and prefui

erence to be given for know-

ledge of arithmetic and draw-

ing.

ii) Health - higher weightage to be given

for physical fitness

iii) Experience - some pre-knowledge of the par-

ticular trade applied.for to be

given preference

iv) Job Interest - young persons who are active and

are keenly interested to learn

the trade to be selected

v) Aptitude - interest and ability to be deter-

mined by both practical and

written tests

Information was collected on the extent and degree to which

craftsmen in the sampled Firms had been trade-tested. The N.A.B.

had introduced the National Trade Test Certificate in 1983.

Prior to that, and till the National Trade Test is made mandatory,

the Certificates issued by Technical Training Institutes after

the completion of a Vocational Training Programme, was accepted

as evidence of satisfactory completion of training in the particular

trade. We are aware that the NAB levied a fee of As.50/- for

trade-testing. This might have been a disincentive for the trained

65

craftsman to appear for the test, particularly so if the Insti-

tute Certificate was equally good for the purpose of employment.

Though the DCS Survey indicates that more workers are appearing

for the Trade Test now, it may be better for the sake of enforc-

ixit standards, to lay down the N.A.B. Certificate as the only

recognised Certificate for employment and to accelerate the work-

ing of the administrative machinery within the N.A.B. to expedite

the conduct of these Trade Tests.

It was found that the percentage of employers processing Certi-

ficates of Competency - the Naticqal Trade Test Certificate,

Grade III - was low for all the trades covered. Therefore, its

importance for obtaining employment has to be regularised by

statute, if standards are to be maintained.

The Survey has revealed that the practice of maintaining records

relating to the skil's and competency level of skilled workers

has not been well established in this country, and that trade-

testing was not regarded as an essential part of the recruitment-

procedure for local jobs, unlike in the case of foreign jobs.

It has transpired from the Study that of the candidates tested

by the N.A.B., 58% were CITP-trained workers and from those who

had passed the Tests, 63% were again CITP-trained craftsmen.

71% of the CITP-trained who appeared for the Tests in 1984 were

found to be successful, whereas only 42% of the non-CITP-trained

who presented themselves for the Tests were able to pass. The

corresponding pass rates for 1985 were 48% and 39% respectively,

whilst for 1986 they were 50% for CITP candidates and 42% for

non-CITP workers. The percentage of passes for Carpentry andElectrical Wiring has been lower than that for Masonry in both

groups. The percentage of passes for Equipment Mechanics has been

significantly high, with the numbers appearing for the Trade Test

being relatively small compared with those for Carpentry, Masonry

and Electrical Wiring.

00

CHAPTER V

BANK GROUP PERFORMANCE

The Project Objectives were clearly defined with appropriate

emphasis on the quality and the training output targets to

be achieved.

Throughout the implementation period, communication between

the Project Management and the Association has been cordial..

There were 13 Review Missions undertaken to monitor the

Project implementation process with an average interval

of 6 months. The negotiations with the Revfew Missiors were

receptive and constructive. The outcome of the negotiations

resulted in the following:-

- Change in the percentage reimbursement of Training

Material Expenditure from 50% to 80% from November

1983.

- Fellowship Programme to train CITP Staff.

- Instructor Training Programme.

- System for engagement of Local Consultants.

- Training Programme for Highways Sector.

- Continuation of the Project - ICTAD.

The Project was able to achieve 66% of the original Estimated

Trainee Output due to the 2-year extended period granted by

the Assoc'ation.

The original Credit Facility of SDR 10.9 million was made avail

able by the Association in spite of the 44% fall in the rupee

exchange rate against the US dollar during the period 1981 to

1986.

The Association has allowed the category-wise limits set out in

Schedule 1 of the Development Credit Agreement of 1981 to be

exceeded as long as the disbursements were within the credit-

limit of SDR 10.9 million.

CHAPTER V1

LESSONS LEARNED AND RECOMMENDATIONS

a) GENERAL

6.01 Planning & Budgetary Control

* The cyclicality of the Construction Industry is an universal

phenomenon found both in the developed as well as the develop-

ing world. The operation of this phenomenon has adversely

affected the long-term growth and development of the Construc-

tion Industry in Sri Lanka. Planning in the Construction

Sector should therefore provide for this inherent volatility

and include built-in mechanisms for a continuous assessment

of training needs. In addition to an overall Itidicative Plan,

an Annual Budget should be prepared based on actual needs

issessments for the year. In this way, greater flexibility as

well as tichtAr btiqetary planning and control could be achieved.

o The Project, which was originally planned for 3 years, was

later extended to cover a period of 5* years. The first year

was found to be a preparatory period and training activities

could not be effectively implemented without the necessary

resources to provide the training assignment. In future projects

of this nature, planning should take cognizance of the need to

provide for preliminary activities.

6.02 Co-ordination of Work

* The Inter-Ministerial Co-ordination through the Secretaries'

Committee proved invaluable in co-ordinating and steering the

project to its successful completion.

This type of arrangement could be recommended for future projects

where several agencies are required to contribute towards the

successful implementation of the Project.

6.03 Preparation of Documents & Development of the Status of Contractors

* The work of the National Steering Committee and its specialist

Sub-Committees, in preparing valuable documents for use in the

68

Construction Industry and in establishing the Construction

Contractors' Association as a recognised body of Contractors

in the interests of the Construction Industry of the country,

is laudable.

Every effort sliould now be made to implement the Recommenda-

tions of these documents in both the Public and Private Sectors

for maintaining uniformity of standards. More incentives should

be given to local contractors for upgrading their knowledge of

financial control and management, and construction technology

in order to enab&e them to execute their work efficiently.

6.04 Quality of CITP Trainees

* In general, the quality of the CITP-trained worker has been

found to be better than those trained by other agencies, accord-

ing to the Impact Assessment Study carried out in 1987.

The curricula and training standards should be constantly re-

viewed and developed to maintain standards of achievement accept-

able to the Construction Industry.

b) PHYSICAL

6.05 Project Formulation

* The assessment of industrial needs periodically throughout the

duration of the Project, proved very useful in controlling the

output to the required levels.

Such Studies should be carried out on futupe projects, both

initially as well as throughout their duration, so that the

trained personnel could be absorbed by the industry. This

would prove useful to the Industry.

* The Needs Assessment Study of December 1985 has pointed out the

need for re-training of manpower already at work and t.ze numbers

to be re-trained per year.

Re-training and Pefresher Courses should be introduced And

69

properly organised for execution without prejudice to the

training of newcomers.

* Trade Testing had not been carried out at the end of each modu-

lar Training Course

Arrangements should be made to trade-test all workers who com-

plete their tra'ning at the end of their training period.

This should be at national level, and the test may even replace

the final assessment carried out at the different Training

Centres at present. The administrative machinery of the N,A.B.

may have to be suitably expanded to meet such requirements.

* Only 326 Females had been trained to completion by the Project

against a total overall output of 37,742,

It may be that females do not wtsh to apply for jobs of this

type in view of the arduous nature of the field work involved.

Hemever, th'sr wltb .the necessary personality, physical fitness

and aptitude foz. the work ahould be given every encouragement

if they do apply, and be absorbed for training without any sex

discrimination.

* The Tracer Studies have revealed that there is no uniform wage

pattern prevailing in the different trades,

While conceding the principle that "supply and demand" should

determine wage rates in the industryt a statutory minimum wage

rate should be fixed by the State.

6.06 Project Implementation

* The Impact Assessment Study has highlighted the need to consider

certain criteria such as level of Education, Bealth, Experience,

Job Interest and Aptitude in the selection of CITP Trainees.

These criteria are worthy of consideration and adoption at least

in a modified way for certain categories of workers.

- Tracer Studies have revealed that quite a significant number of

trainees are not traceable from the different samples analysed

70

(in the 3 Tracer Surveys) due to their leaving the Course

without any intimation or giving incorrect addresses.

This situation could be avoided by calling for proper Identi-

fication and references from the applicants for training.

* The Impact Assessment Study has revealed that there axe

significant shortages of manpower in some of the Districts.is

Future recruitnert of trainees should be made on a more equit-

able distribution of manpower amongst the 24 Districts in

conformity with the development work taking place in the

different areas.

6.07 Supervision

a According tc the Needs Assessment Study of 1985, there appears

to have been an over-production of Works Supervisors, result-

ing in a suspension of training assigned for Supervisors

during 1986.

The training of Works Supervisors, as much as other trades,

should be so organised as to result in an uniform output over

the entire pro4ect period (to ntatch the needs of the Construc-

tion Industry).

4 The short-term Management Courses have proved useful to Upper

Level and Middle Level Managers.

These Courses should be intensified with a view to training

larger numbers in the interests of work-efficiency.

6.08 Technical Assistance

O It is understLod that individual Foreign Consultants,appointed

by the Lead Consultants, had been deployed on the Project

without prior consultation with the CITP Authorities regarding

their selection.

Future Agreements should cater for greater flexibility in this

regard by making provision for the several nominations received

for the expatriate positions to be referred to the local autho-

71

rities for their views and reaommendatlons before the filz.

selection is made.

Further, Local Consultants should be employed, whenver suit-

able Personnel are available, in preference to Fbreign Con-

sultants, for greater cost-effectiveness. For the purpose

of this Project, 25% of the Budget was allocated for Techni-

cal Assistance. This figure could have been significantly

reduced if Local Consultaits had been emploj-d whejever

possible.

CHAR-3

_ 75 _ CHART I

PERCENTAGE CHANGES IN GNP AND CONSTRUC'rS(N SECTOR OUTPUTCHANGt

*THt YEARS 1974-1911 ARE OASEDON CONSTAtr 19T0 FACTOR COST PRICE

- - - - THE __ARS 1992 ONWARDS ARE SAUI0ON CONSTANT 1962 FACTOR COST

* PRICES-

_ONS"U a k A SOURCE -CENTRAL SAHE

9 9 ? I _ COttSTRUC 0f \ _ -

.'vrz fivF S3 X Sae

.1.E-t \ II :: l.

- 76 - CLART 2

ALL ISLAND AVERAGE DAILY WAGE RATES INRs.C ROUSING CONSTRUCTION

70- 1 -

60 @ / -jtIAASTER C PENTER

40 1}l § -- ] |

.' | I I - ,-- __

i0 Po UNSKILLED HELPER

20- -_

|0-~~~~~ . I

10.

O 0 -YEAI

SGi 19 80 1981 1982 1983 1984 t985

SOURCE - CENTRAL BANK OF SRI LANKA

CHART 3

-77 -

*WHOLESALE PRICE INDE-X1q74 -100MONTHLY

POINTS IN INOEX POINTS IN INOEX360 . 360

340 340

320 -320INTERMEDIATE - /-

300 GOODS 30O

28Q 280

260 260

240 240

INV.ESThENT -d * 220* 220 * GOODS WH~OLESALE

200 200

180 _1.80

160 .1icGsu^ J60160 -a-- ~~~~CONSUMER16140 ~~~~~~~~GOODS1$0 -. ww 40

120 120

100 100

80 ., I I }'I I T. osim- 801976 1977 1978 i979 1980 1981 1982

C.nulI hem o * C.,)..

INTER MINISTERIAL CO-ORDINATION

CABINETOF MINISTERS

MINISTRY OF LOCAL GOVERNMENToHOUSING AND CONSTRUCTION

_SECRETAR IESMI Yr_GEH.O TTEE MINISTRY or YOUTH AFFAIRS

MINISTRY OF LOCAL GOVERINM4ENT. _____ADEPOMNHOUSING AND CONSTRUCTION AND EMPLOYMEN

I _________L__________________I___ MINISTRY OF LABOuRSTEERING COMMITTEES

C I T p__ FMINISTRY OF PLAN IMPLEMENTATION

MINISTRY OF HIGHER EOUCATION

MINISTRY OF LANDSAND LAND DEVELOPMENT

MINISTRY OF MAHAWELI DEVELOPMENTADVISORY COM"I4TEES

WORKING GROUPS ] -----|RAINING INSTtTUTIONS | |ON-SITE TRAINING I

T R A I N E E S T R A I N E F.S

TABLES- 79 -

TABLE I

- 81 -

PERCENTAGE CHANGE IN GNP* & CONSTRUCTION SECTOR#

Year GNP (l) Construction Sector

1974 3.2 7.06

1975 2.6 - 8.8

1976 2.8 5.5

1977 4.4 -96

1978 8,75 28.2

1979 6.3 209

1980 5.5 11.0

1981 4.1 - 3.0

1982 4.9 - 2.0

1983 4.1 1.0

1984 5.1 -0.1

1985 5.3 0.5

1986 4.5 1.5

* The years 1974-1981 Are basqd on constant 1970 Factor Cost prices,The years 1982 onwards are based on constant 1982 Factor Cost prices.

# Source: Central Bank,

TABLE 2

- 82 -

ALL-ISLAhND AVERAGE DAILY WAGE RATES IN HOUSING CONSTRUCTION*

(excluding wages in large-scale construction activities)

Category

Master Carpenter Master Mason Unskilled Helper.Ye.ar \ (Rs.) (Rs.) (Masonry) (RS.)

1979 27.51 27.08 14.21

1980 36.95 35.85 18.80

1981 46.85 45.90 23.82

1982 53.81 52.42 2S.34

1983 59.88 58.36 30.15

1984 65.20 63.50 33.11

1985 70.35 68.41 35.39

* Source: Central Bank of Sri Lanka.

TABLE 3

- 83 -

COMPOSITION OF SKILLED MIGRANT WORKERS

(TO THE MIDDLE EAST - L979*)

OCCUPATION PERCENTAGE

Carpenters 14.4

Masons 8 5

Welders 3.5

Painters 2.4

Plumbers, Steel Fixers, Barbenders, etc. 5.2

Mechanics 10.0

Electricians 6.5

Fitters 2.3

Drivers 15.9

Heavy Vehicle Operators 3.5

Plant Operators 4.1

Cooks and Chefs 5.5

Hotel Stewards, Room Boys, etc. 5.9

Tailors, Seamstresses 1.9

Others 10.4

100.0

* Source: Korale & Karunawathie (1981) -

From "Impact of Out & Return Migration on Domestic

Employment in Sri Lanka: A Preliminary Analysis" -

The Asian Employment Programme (ILO/ARTEP) 1985.

SRI LANKA CONSTRUCTION INDUSTRY TRAINING PROJECT

F I X E D A S S E T S (Rs.'000) U S $ MILLIONS

ACTUAL EXPENDI1URE

CATE5ORY DESCRIPTION NO. COST LOCAL FOREIGN TOTAL iAX:AL FOREIGN

1. LAND 5,777 5,777 - 0.02 0.02 -

2. CIVIL CONSTRUCTION Head Office a Technical Institutes 13,732 13,732 - 0.53 0.53

3. MACE1NERY b EQUIPMENT Self-Propelled Scrapers 2 7587 459 7128

Konatsu Motor Graders 3 3750 393 3357

Komatsu Dozer 1 Unit 3592 166 3416

Komatsu Dozer 1 915 - 915

Mobile Cranes 2603 b1i 1912

Excavator Crane 1 3179 56 3123 1

xobelco Front End Loaders 3 2589 24 2565 s

Intergral Wheel Loader 1 575 170 405

Hydraulic Excavators 2 2561 300 2261

Mitsubishi Hydraulic Excavator 1 996 996 -

Hitachi 10 BV Excavator 1 1269 65 1204

Hitachi Hydraullc Excavator 402 - 402

D-65 Tractor Angle Pan-Tilt Dozers 2 513 103 410

Bulidozer 1 1481 11 1478

Internal Wheel Loader Backhoe 1 607 82 525

Scraper Backhoes 2 950 7 943 c

JCB Loader Backhoe 1 1062 60 1002 oI

Lubrication Unit 1 379 24 355

Vibration Engine with Pokers 6 802 802 -

Nissan Diesel Tractor 1 2152 721 1431

Contd.

F r x E D A S S E T S (Rs.I000) U S S MrLLIONS

ACTUAL EXPENDITURE

CATEGORY DESCRIPTION NO. COST LOCRL POREIGN TOTAL LOCAL FORETG

John Dere Tractors 3 2923 364 2559

D-65 Tractors 2 3526 612 2924

MP Agricultural Tractors 3 567 110 457

Isuzu Commercial Trucks 2 1335 34 1301

Nissan Truck 1 676 676 -

Mobile Workshop Truck 1198 417 771

Isuzu Dump Trucks 3 1345 _ 521 824

Isuzu Cargo Truck 1 656 21 635 1

Dumpers 4 907 907 - U'

High Discharge Dumpers 2 379 28 351

All-Diver Dumpers 2 395 15 380

Tractor with Tipper 1 1250 180 1070

S-drum Vibratory Roller 1 1677 335 1342

Vibratory Roller 1 618 21 597

Crawler Drill Rig 1 2078 416 1662

Komatsu Crawler Tractor 1 2189 439 1751

Tractor with Towing Wrench 1 1270 130 1140

Komatsu Compressors 2 556 556 -

Others 8523 2070 6453

69,264 2.74 0.52 2.22

Contd.

F I X E D A S S h T S (Rs. ' nO) u s s MILLIONS

ACTUAL EXPENDITURE

CATEGORY DESCRIPTION NO. COST LOCAL FOREIGN TOTAL LOCAL FOREIGN

4. MOTOR VEHICLES Mitsubishi L 300 Vans 2 259 258 -

Lancer Cars 7 835 e3s -

Ford Lacer Cars 2 196 19 6 -

Renault Car 1 292 292 -

Mitsubishi Jeeps 2 356 356 -

Nissan Double Cab 1 260 260 -

Datsun Double Cabs 2 300 300 -

Pajero Jeep 1 370 370 -

1986 Additions

Toyota 8iace Van 1 472 472 00

Mitsubishi to 300 Van 1 296 296

Toyota 15-seater 1 610 610 -

Mitsubishi Pajero 2 1016 1,016

Nissan Double Cab 1 445 445

S,706 0.23 0.23

5. FURNITURE, FIXTURESa OFFICE EQUIPMENT 4,187 4.187 0.17 0.17 -

6. TOOLS. IDPLEMENTS SINSTRUMENTS 7,076 7,076 - 0.31 0.31 -

NOTES 105,742 48,743 56,999 4.00 1.78 2.22-NOTES=0= ====w 00555 =3=3 S050 =Wfl(1) ACTUAL EXPENDITURE

SOURCE - UPTO 1985 - from audited accounts1986 - per Draft Accounts

SRI LANKA CONSTRUCUIOW INDUSTRY TRAINING PROJECT

TECSNICAL ASSISTANCE

DESIGNATION PERIOD MAN MONTO S $OTAL PAYMET - Stq E '000

1. BRITISH COUNCIL CONSLTAN$S 1517

Nr John Ellett Senior Training Advisor 1. ;.81 - 30. 6.82 12

Mr L.H. Rothwell Construction Industry Specialist 1. 7.81 - 5. 4.82 10

Mr D. nHamond Senior Craft Training Advisor 1. 7.81 - 31.12.85 54

Mr J. Yurnival Senior Mechanical Equipment OperatorTraining Specialist 1. 8.81 - 31.12.85 53

Mr A. Poll Equipment machinery Training Specialist 10. 8.81 - 3. 4.83 20

Mr S. Chamberlain Supervisor Management Training Specialist 15. 8.61 - 15.12.84 40

Mr R. Macadan Electrical Training Specialist 29. 8.81 - 15.12.83 28

Hr P. Fleming Masonry Training Specialist 29. 8.81 - 31.12.8S 52

Mr R Devonshire Carpentry Training Specialist 29. 8.81 - 30.12.84 40

Mr K. Owen Apprenticeship Advisor 27. 9.81 - 31.12.84 39

Mr J Bell Plant Operator Training Specialist 10.10.81 - 15. 6.84 32

Mr P. Harrowing Mechanical Equipment Training Specialist 12.10.81 - 30. 6.84 33

Mr H. Binny Construction Industry Consultant 2.10.82 - 22.12.82 ) 524. 9.83 - 12.11.83 )

Mr S. Bomer Mechanical Training Advisor 7.11.83 - 31.12.83 2

Hr A.B. Robinson Crane Operator Training Advisor 5.12.83 - 30. 6.84 7

Mr M. Cooper Management Training Advisor 31. 3.84 - 31.12.84 9

2. P0STER WHEELER ENERGY LTD - ENGLAND 73

Mr D. Hammond Senior Craft Training Advisor 1. 1.86 - 31.12.86 12

DESIGNATION PERIOD) MWI .43IES TOTAL PAYMEWT - Sto f I ZCC

j. w.s. ATKIN INTfRNATIONAL - EOGLAND

Mr a White Senior Contract Advisor (Contract 1: Oct 1984-nct 1985) 12 .

Kr D. Whitwell Training Specialist 3) 160

Mr C. Offen Maintenance Specialist 6)

Mr C. Camp Technician 2

Mr P Napier Financial Advisor (Contract 2: Feb 1985-Feb 1986) 12

Mr A Spiers Site Engineer 13 287

Mr D.S. James Project Manager (Contract 3: may 1985-Kay 1986 8

Mr R.C. Hale Senior Traffic Engineer 9

Mr P.J. Tindall Senior Highways Engineer 9) 497

Mr J.L. Gibbon -do- 5

Mr A.N. Bowerman Senior Technician 5)

MWs R.D. Jarvis a D. Cloves Specialist Support 1I

Mr J. White Senior Manpower Training Advisor (Contract 4: Aug 1985-Feb 1986) 6 68 1002

538 2592

*.

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"t r40505 ts|*5 ICC l* l *'I l SoIW(s *toti'( * 9- d .g 19014s. . 5* $asgl *9 p.tv

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ti' tole 1re i- w oee -ell N's ; s g oO- ego so'. le': J1m5.g" 9)440

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;'".;~~~~~~~~~~~~~~~~~~~~..go .;i5C545 t.51T~~~~~~~~~~~~" ~ ~ P *eC - T

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SRI LANKA CONSTRUCTION INDUSTRY TRAINING PROJECT

TOTAL PROJECT COSTS BY CATEGORY (USS MILLIONS)

APPRAISAL ESTIMATE ACTUAL EXPENDITURE D I F F E R E N C E

LCCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL IOCAL FOREIGN TOTAL 2

I Fixed Assets 0.55 2.91 3.46 1.78 2.22 4.00 (1.23) 0.69 (0.54) (16)

(From Table 4)

II Training Materials 5.51 3.29 8.80 4.54 0.41 4.95 0.97 2.88 3.85 44(From Table 8.1) °

III Technical Assistance and ITraining Costs 1

(From Table 8.2)

8.16 4.61 12.77 2.85 4.81 7 3.37 (0.40) 2.97 23IV Administration and General I )

Overheads excluding depreciation I 1.94 0.20 2.14

(From Table 8.3)

14.22 10.81 25.03 11.11 7.64 18.75 3.11 3.17 6.28 25

NOTES : (1) APPRAISAL ESMATES

SOURCE - Sri Lanka Staff Apprasal Report of March 3, 1981 (Table 12)

(2) EXICHANGE RATES US$ -_

SOURCE - Central Bank of Sri Lanka

1981 - 19.50, 1982 - 20.86. 1983 - 23.61, 1984 - 25.44, 1985 - 27.16, 1986 - 28.02

SRI IANKA CONSTRU`TION INDUSTRY TRAINING PRO.WIET

TOTAL PROJECT COSTS BY CATEGORY (Rs'MILLIONS)

APPRAISAL ESTIMATES ACTUAL EXPENDITURE D I F F E R E N C E

LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL LOCAL FOREIGN TOTAL 2

I Fixed Assets 2.3 43.6 45.9 48.7 57.0 105.7 (46.4) (13.4) (59.8)

(From T7bie )

II Training Materials - 50.0 33.1 83.1 114.8 11.4 126.2 (64.8) 21.7 (43.1)

(From Table 8.1)

III Technical Assistance and ITraining Costs 1 72.1 116.5 188.6

(From *Table 8.2) 167.7 59.2 126.9 (54.9) (61.9) (116.8)

IV Administration and GeneralOverheads excluding depreciation ] 50.5 4.6 55.1

(From Table 8.3) 1

Total quantity contingency 12.1 11.: 23.4 12.1 11.3 23.4

Total price contingency 76.3 47.3 123.6 76.3 47.3 123.6

Taxes and duties 47.5 - 47.5 47.5 - 47.5

255.9 194.5 450.4 286.1 189.5 475.6 (30.2) 5.0 (25.2) 6

NOTES : (I) APPRAISAL ESTIMATES

SOURCE - Sri Lanka Staff Appraisal Report of March 3. 1981, Cost Estimates page 18.

co

SRI LANKA CONSTUCTON INWDUSTRY TRAIN4.l ; Pi.JFCr

TRAINING MATERIALc .Rs'OO) USS MILLIONS

1981 1982 1983 1984 1985 1986 TOTAL LOCAL FOREIGN TOrAL LOCAL FOREIGN

(A) ACTUAL EXPENDITURE

1. Fuel and Lubricants for 6 345 1,058 3,032 2,631 2,421 9. 93 9,493 - 0.36 0.36 -Operator/Mechanic Training

2. Training materials consumed 797 13,184 11,995 19,442 19.286 18,689 83,393 83.393 - 3.32 3.32 -

3. Plant hire for Operator/ 26 3.145 1,395 708 251 115 5,640 5,640 - 0.25 0.25 -Mechanic.. Training

4. Spares for Operatorl 157 220 613 4,101 3.576 19.08A 27,.15 16.285 11.430 1.02 0.61 0.41Mechanic Training

986 16,894 15,061 27.283 25.744 40.273 126.241. 114.811 1314iO 4.95 4.54 0.41

NOtE: (1) ACTUAL EXPENDITURE

SiURCE - 1981 to 1985 from audited accounts

1986 per draft accounts

.4

SRI UANKA CONSTRUCTION INDUSTRY TRAINING PROJECT

TECHNICAL ASSISTANCE AND TRAINING COSTS (Rs 000) USS MILLIONS

1981 1982 1983 1984 1985 1986 TO$AL LOCAL FOREIGN TOTAL LOCAL FOREIGN

(A) ACTUAL EPMENDITURE

1. Fees to Consultants 11.909 19,570 16,547 17.146 38.509 10,681 114.362 - 114,362 4.72 - 4.72

2. Fees to teaching/support 260 4,619 7,013 4,645 5,510 7.070 29,117 29,117 - 1.17 1.17 -

staff

3. Allowances to Trainees 159 2,176 4.148 3.585 2,844 3,487 16,399 16,399 - 0.66 0.66 -

at Institutions

4. Allowances to Trainees - 490 2,460 2.039 3,412 1,713 10,114 10.114 - 0.39 0.39 -

on site

5. Travelling expenses - local 30 314 748 1,065 1.140 883 4,180 4,180 - 0.17 0.17 -

6. Travelling expenses - foreign - 938 873 - - 277 2,088 - 2,088 0.09 - 0.09

7. Staff Training Programne 16 20 122 87 115 1.541 1.901 1,901 - 0.07 0.07 -

8. Other SerAices. uniforms, 25 395 632 1,254 1,115 6,973 10,394 10,394 - 0.39 0.39 -

trade testing etc.

12,399 28,522 32,543 29,821 52,645 32,625 188,555 72,105 116,450 7.66 2.85 4.81

NmES : (1) ACTUAL EPMDITReSOURCE - 1981 to 1985 from audited accounts

1986 per draft accounts

SRI LANKA CONSTRUCTION INDUSTRY TRAINING PROJECr

ADMINISTRATION AND GENERAL OVERHEADS (Rs'000) USS '000

1981 1982 1983 1984 1985 1986 TOTAL LOCAL FOREIGN TOTAL LOCAL FjOREICN

ACrUAL EXPENDITURE

1. Personnel Emoluments 22 1,236 1,791 3,368 5,157 5,367 16,941 16,941 - 0.65 0.65

2. Administrative Expenses 266 1,642 2,165 3,211 3,251 6,920 17,455 17,455 - 0.68 0.68

3. Utility Services 56 524 1,224 1.590 2,508 2.428 8.330 8.330 - 0.32 0.32

4. Service Charge on IDA Loan 68 324 615 143 2,192 2,000 5.342 5.342 - 0.20 0.20

5. Fellowship Outside Sri Lanka - 2,360 - 439 763 1,085 4,647 - 4,647 0.20 - 0.20

6. Research Studies and Surveys - - 398 25 257 241 921 921 - 0.03 0.03 -

7. Public Relations, Advertising - - 543 749 194 53 1.S.39 1.539 - 0.06 0.06 -and Information

Sub Total 412 6,086 6,736 9,525 14,322 18,094 55,175 50,528 4,647 2.14 1.94 0.208. Depreciation of fixed assets - 206 1,443 6,038 7.375 9,041 24,103 24,103 - 0.90 0.90 -

412 6,292 8,179 15,563 21,697 27,135 79,278 74,631 4,647 3.04 2.84 0.20

NOTES:

(1) ACTUAL EXPENDITURESOURCE - 1981 to 1985 from audited accounts

1986 per draft accounts

SRI LANKA CONSTRUC1ION INDUSTRY TRAINING PROJECT

VOTED FUNDS FROM GOVRENT OF SRI LAAMINISTRY OF LOCAL GOVERNMERT, NOUSING AND CONSTRUCTION

Rs'OOC USS '000

Y E A R PARTIAL CUMULATIVE LOCAL EXPENSES LOCAL ElPENSESREIMBURSED PARTIAL CUMUlATIVE RElMBURSED

BY IDA BY IDA

1981 411 411 - 21 21 -

1982 51,400 51,811 60 2.464 2,485 3

1983 52,282 103.093 12.360 2.214 4.699 524

1984 52,800 155.893 29,760 2,075 6.774 1,170

1985 76,960 232.853 47,360 2.833 9,607 1,743

1986 84,851 317,704 62,357 3,028 12,635 2,225

(1) ACTUAL RECEF

SOURCE - 1981 to 1985 from audited accounts1986 per draft accounts

(2) LDCAL EXPENSES REIMBURSED BY IDAThe reimbursements by IDA are sent direct to the Treasury. 10

The balances are ceflected in the project accounts under the categorv of debtors In current assets.

SRI LANKA CONSTRUCTR.,# , TifY IRAINING PROJECT

INTERNATIONAL :.)MPMENT ASSOCIATION

ACTUAL DISBURSEMENT . . APPRAISAL ESTlttTESY e A R S D R '000 Rs '01Y: US$ '000 USS 'oor

PARTIAL CUMULATIVE PARTIAL '1,1AULATIVE PARTIAL CUMULATIVE PARTIAL CUMULATIVE

1981 1,241 1,241 27,632 !7,632 1,417 1.417 900 900

1982 1,199 2,440 30,048 37,680 1,440 2,857 4,500 5,400

1983 1,564 4,004 38,639) 96,319 1,637 4,494 3.800 9,200

1984 1,348 5,352 35,090 131,409 1,378 5,872 4.300 13,500

1985 2,348 7,700 66,328 197,737 2,439 8,311 - -1986 to 2,444 10,144 85.437 283.174 3,049 11,360 - -end June 1967

NOTES:

(1) SOURCEAPPRAISAL ESTIMATES - Sri Lanka Staff Appraisal Report of March 3. 1981 (Table 13)ACTUAL DISBURSEMENTS - 1981 to 1985 from audited accounts

1986 per draft accounts wzq(2) Amount of Credit Allocated - 10.9 million SDR

SOURCE : Development Credit Agreement

TABLE SHOWIrG -OMPARATIV1 STUDY OF TRAINING NEEDS & AC.UAL o.LrrPtV

Training Targets as per Staff Revised Targets according to Needs Actual Output as at 31.12.86Appraisal Report - Assessment conducted by NIBM - Figures based on Output DetailsMar. 3, 1981 (Report No.3219-CE) March 1983 Report - Dec- 1985 furnished by ICTAD.for 1981 to 1984 (3 years) 1982 to 1986. (5 years)RePort - for Total Project Period 5 years_______________________ 1986 only . _ _ _ _ _ _ _ _ _ _ _ _ _ _

Scenario 1 Scenario 2 -Scenario A

Artisans: Basic 45,000 ) ) )Advanced 9,600 ) 17,250 ) 23,900 ) 4,374 ) 20,669

Advanced 9,600 ) ) ) ) + 12,143 (Million Houses

Programme)

Mechanical EquipmentOperators & Mechanics 1,800 6,550 2,830 670 2,331

Work Supervisors 900 3,020 1,000 - 1,499

Works Managers 80 570 150 538 1,100

T 0 T A L 57,380 27,390 27,880 5,582 37,742

AVERAGE / YEAR 19,127 5,478 5,576 5,582 6,862

Notes: ( i) Scenario 1 - based on Works Estimates available for scrutiny to the NIBM

( i) Scenario 2 - based on a 5% uniform'growth rate per year

(iii) Scenario A - based on Works Estimates, caterin' for Maintenance Works as well.( iv) 179 Engineers from the RDA who followed a short-term course in Management have been omitted from the

Output for Works Managers.

( v) The number of females who had been trained is only a paltry 139 for the whole Project-Period.

PROJECTED TRAINING REQUIREMENTS

1982 - 1986 (5 years)

SCENARIO NO.1 - NI3M'S MARCH 1983 REPORT

SKILL CATEGORY 1981 1982 1983 1984 1985 1986 TOTAL

Tech Planning & Mgt. 0 '80 10 70 100 210 570

Site Supervisor 0 1260 110 660 0 1090 3020

Machine Operator -Heavy 0 190 190. 300 360 490i 1530

- do - Light O 1S50 70 700 0 1850 4170

Mechanic - Heavy Equipt. 0 70 100 - 140 20 60 390

Mechanic - Light Equipt. 0 330 0 130 0 0 460

Mason/Bricklayer 0 0 27t30 2910 3220 1980 10840

Carpenter 0 1710 810 1730 0 0 4250

Barbender 0 510 0 210 0 0 720

Scaffolder 0 300 10 40 0 0 350

Plumber 0 0 0 100 40 40 180

Electric Wirer 0 0 50 520 180 160 910

TOTAL 0 6100 4080 7410 3920 5880 27390

GRAND TOTAL FOR 51 YEARS 27,390

AVERAGE YEARLY Ot1TPUT 5,478

vr.i rs)

SCENARIO r;C._ N.i.A.M'. MARCH 1983 REPORT

SKILL CATEGORY 1981 1982 1983 1984 1985 1986 TOTAL

Tech. Planning & Mgt. 0 30 30 30 3v 30 150

Site Supervisor 0 200 200 200 200 200 1000

Machine Operator-Heavy 0 240 240 230 220 220 1150

- do - Light 0 i2r, 100 80 70 50 420

Mechanic-Peavy Equipt . 0 130 130 130 130 130 650 1

- do - Light Equipt. 0 130 130 120 120 110 610

Mason/Brickla:;er 0 2040 2040 2040 2040 2030 10190

Carpenter 0 i670 1660 1660 1650 1650 8290

Barbender 0 360 360 350 350 350 1770

Scaffolder 0 70 70 70 70 70 350

Plumber 0 140 200 190 190 200 920

Electric Wirer 0 470 480 470 480 480 2380

TOTAL: 0 5600 5640 5570 5550 5520 27880

GRAND TOTAL FOR 5| YEARS 27,880

AVERAGE YEARLY OUTPUT 5,576

PROJECTED TRAINING REQUIREMENTS

1986

SCENARIO A - NIBM'S DECEMBER 1985 REPORT

SKILL CATEGORY '986 AVERAGERETRAINING REQUIREMENTS PER YEAR

FROM 1986 TO 1990

Tech.Planning & Mgt. 538 -

Site Supervisor 0 300

Machine Operator - Heavy 227 99

Machine Operator Light 417 379

Mechanic - Heavy Equipt. 26 37

Mechanic - Light Equipt. 0 82

Mason/Bricklayer 3251 2138

Mason/Special Finisher 333 50

Carpenter/Shutterer 325 1599

Barbender/Steel Fixer 0 193

Scaffolder 183 75

Plumber 282 597

Electrical Wirer 0 175

TOTAL: 5582 5724

w

I;

ANNEXES- 101 -

I

ANNEX I

- 103 -

GOVERNMENT DEPARTMENTS & BOARDSENGAGING IN CONSTRUCTION WORK

1. The Department of Buildings

2. Department of Highways

3. Irrigation Department

4. Land Development Department

S. Depprtmerat of Machinery & Equipment

6. Ceylon Government Railways

7. Colombo Port Commission

8. River Valleys Development Board

9. Ceylon Electricity Board

10. Natiorsl Water Supply & Drainage Board

11. Colombo (Low Lying Areas) Reclamation & Drainage Board

12. State Engineering Corporation

13. State Development & Construction Corporation

14. Territorial Civil Engineering Organisation

ANNEX 2

- 104 -

COMPOSITION OF PROJECT CELL

The following were the members of the Project Cell:-

1. Director, CITP.

2. Deputy Director, Supervisory Training.

3. Deputy Director, Artisan Training.

4. Deputy Director, Operator/Mechanic Training.

5. Co-ordinator, On-Site Training.

6. Project Accountant

7. Convenor, National Steering Committee.

8. Project Co-ordinator, MLGHC.

9. Representative, National Apprenticeship Board.

ANNEX 3

- 105 -

LIST OF ARTISAN TRAINING CENTRES

Training Centre Courses Available

1. Hardy Senior Technical Institute, Amparai. Masonry

Carpentry

Electrical

". Junior Technical Institute (JTI), Anuradhapura Masonry

Carpentry

Electrical

3. J T I, Dambulla Masonry, Carpentry

4. J T I, Hasalaka -do-

5. J T I, Homagama Masonry, Carpentry,Electrical.

6. J T I, Kalutara Masonry, Carpentry7. J T I, Kegalle -do-B. J T I, Kurunegala Masonry, Carpentry,

Plumbing

9. J T !, Kuliyapitiya Masonry, Carpentry

10. J T I, Matara Masonry, Carpentry,

Electrical, Plumbing

11. J T I, Nuwara Eliya Masonry, Carpentry

12. J T I, Ratmalana Masonry, Carpentry,

Electrical, Plumbing

13. J T I, Ratnapura Masonry, Carpentry14. J T I, Sammanthurai Masonry, Carpentry,

Electrical

15. Sri Lanka Technical College, Colombo 10. Masonry, Carpentry

16. Sugathadasa Technical Institute, Mattakkuliya. Masonry, Carpentry,

Electrical.

17. Dudley Senanayake Technical Institute, Warakapola. Masonry, Carpentry.

le. Affiliate Technical Institute (ATI), Wariyapola. Masonry, Carpentry

- 106 -

19. A T I, Beliatta Masonry, Carpentry2U. A T I, Balapitiya Masonry, Carpentry

Steel Fixing & Bar Bending

21. Polytechnical Institute (PI), Kandy. Masonry, Carpentr.;,

Electrical, Plumbing,

Steel Fixing & Bar Bending

22. P I, Jaffna. Masonry, Carpentry,

Electrical, Plumbing.123. P I, Badulla. Masonry, Carpentry

24. P I, Galle. -do-

2 5. SEC Pre-Cast Yard, Ekala. Steel Fixing & Bar Bending

- 107 -

ANNEX 4

MAP OF SRI LANKA SHOWING LOCATION OF

TRAINING INSTITUTES

i'| n~~~RA - APU- A *GALKULAMA

OAMSULLA0

WARIYAPOLA SATICALOA

KULIYAPITIYA KURUNEGALA0

\ q,~~~~~*AsUAK AMANTHURAIWARAKAPOLA *KANDY

0 KEGALLA PARAI

COLOMBO omTTAKKULIYA 0 MR.A aooB w HOMAOAMA N t U

RATMALANA °

o RATHAPURA

KALUTARA 0

SALAPITIYA

IUonIO TECHNICAL INSTITUTESPOLYTECHNICAL INSTITUTES

MATARA StNIOR TECHNICAL INSTITUTESAFFILIATED TECHNICAL INSTITUTES

CtNTRt FOR H,P5 BUILDINGOPflATORS TRAINtNG CENTRE(H.E)OPERATORS q * (L.E)

- 108 - ANNEX S

LIST OF SPECIFICATIONS PREPARED BY THE CITP

1. Conditions of Contract for Works of Building and

Civil Engineering.

2. Guidelines for Tender Procedures.

3. Specifications for Irrigation and Land Drainage.

4. Specifications for Water Supply, Sewerage and Storm

Water Works.

5. Specifications for Reclamation Works.

6. Specifications for Ground Water Exploration and

Exploitation.

7. Specifications for Building Works (Vol. .1)

8. Specifications for Building Works (Vol.II)

9. Specifications for Coastal and Harbour Engineering Works.

10. Specifications for Electrical and Mechanical Works

Associated with Building and Civil Engineering.

. ~~~~~~~~~~~~~~***d* ** *

- 109 - ANNEX 6

BI9LIOGRAPHY=0=0=000=00-

1. Central Bank of Sri Lanka - Annual Reports(1978 - 1986)

2. Central Bank of Sri Lanka - Review of the Economy

(1978, 1981, 1985)

J. Central Bank of Sri Lanka - Bulletin(September 1986)

4. Dr. S. Ganesan - "Management of SmallConstruction Firms" -

Asian ProductivityOrganisation (1982)

5. Dr. S. Ganesan - "The Development of

National Contractors:Part I - ICTAD in

Association with the

World Bank (1986)

6. Dr. S. Ganesan - "The Construction industry

in Sri Lanka" -World Employment Programme

Research (1982)

ARTEP / ILO - Asian Employment Programme"Impact of Out & ReturnMigration on DomesticEmployment in Sri Lanka:

A Preliminary Analysis(1985)

o. Employment & Manpower - "Dimensions of Sri Lankan

Division, Ministry of Returned Migration"

Plan Implementation (1985)

9. Employment & Manpower - Migration Statistics

Division, Ministry of (1980, 1981)Plan Implementation

10. Department of Census - Labour Force & Socio-

& Statistics Economic Survey(1981/81) Sri Lanka

1l. World Bank - Sri Lanka Staff AppraisalReport: Sri Lanka Con-

struction Industry Training

Project (1981)

Contd.X= == =

- 110 -

12. The British Council - Sri Lanka ConstructionIndustry Training Project(August 1986)

13. SLCITP, MLGHC - Preparation Report:Second Construction IndustryTraining Project

14. C I T P - Tracer Study(1983, 1984, 19851

15. National Institute of - "Assessment of Training NeedsBusiness Management: in the Construction Industry"C I T P (1983, 1985)

16. Department of Census - Impact Assessment Study& Statistics (July 1987)

17. Quarterly Progress Reports (1981 - 1987)

1.8. Minutes of Secretaries Committee (1t Meetings)

19. Aide-Memoirs (9 - from May/June 1981 to March 1987)

- ill -

COMMENTS FROM THE BORROWER ANNEX 7(a)

o|sglo~~~~~~~~~~~~~~~~~t , qmo l.9./

S869267Mifliw I a.. q.0Mnine }id 1 Your No. /

Xtrla blSnin r t > ZCIC3

zzSw }1583164 =An0aataihSocruary 15104ffih~~~~~~~~~~~~~~aburSertariat

}3991 MINISTRY OF LABOUR Nonpita,

p }.istcslrt.Nvaer 1988.

Mr. Alewamier bicmicki,Division Chief,Operations Evaluation Department,1818 H Street, N.W.Washington, D.C. 20433,U.S.A.

Dear Mr. Nlowicki,Re: Sri Lanka - Construction Industry Project

( Credit 1130 - CE )Pass-arKg Audit Report

Thank you for your letter of Septenber 30, 1988 forwarding

a copy of the Completion Report on the above Project.

I have read the rePort and I find that it contains a fair

and reasonable assessnunt of the achievements of the Project.

Yours sincerely,

D.M.P.B. Dasanayake

Secretary

Ministry of Labour.

- 112 -

@3* *:Go. Mm 0D3 9ti6 q)55.TPage 1 of 2&iTtap" dLaoL4 196WtwIiwp .a4U,m"

MNISTRWY OF LOCAL GOVERNMENT. HOUSING AND CONSTRUC`ON

_D 0;0 88 esww*whb Be GAMUDAWA 66

*oeA . J11 11 Imwk&" ueduYEAR J SHELTER FOR ALI

"4*0.~U'". gggup*wqVGa'A uIa2_U .J- Sutjtfrl.y". itt jawduomW1 Kotte. S.ttamuII

56236661 S9pu*a* } 562361 JJ& )S62461 .ats3ow 57162"t"tiaIaw J Privatue 5mmr j dtlomi 5ec f I nn aj I 5I

5462370 *UId-"f 5 4 242 4 12 uU) 5624a) S J562 4D0ty MtntsW J s ecmtasy j SttMEW SEWraus7 (Mm.) J

"d4Fem }* PPL/3/ICTAD/22/87 b lNpvember , 1988

Mr.Alexander Nowicki,

Division Chief,Operations Evaluation Department,

The World Bank,

1818 H Street,

Washington, D.C. 20433,U.S.A.

Dear Mr.Nowicki,

Re: Sri Lanka - Construction Industry Project

(Credit 1130-CE)Pass-Through Audit Report

In response to your letter of September 30, 1988, ' am *leased

to forward the following comments on the Project Completion Report on

the Sri Lanka Construction Industry Training Project (IDA Credit 1130-

CE).

(a) t/s R.D.C. selected as an independent group was recruited

to review the CITP activities and write a completion

report with the concurrence of the visiting IDA Mlssion.

The general observations and the specific comments are

based on the observations made by the consultants on the

project activities. This has been cleared through after

regular Interationls with the CITP/ICTAD staff during

the consultants work.

(b) The methodology for the preparation work was also deter- -mined by CITP in consultation with the IDA Mission.

(c) Therefore, as a general observation It may be mentioned

that the Mlnistry is in agreement with the contents of

the report.

K o. M g iAOFTIN" N TUN

ANNEX 7(b)Page 2 of 2

- 113 -

(d) There has been some variation in the extent to whichthe Project Objectives have been achieved. The majorvariation Is In the quantitative trainee output targetswhich is recorded as 65%. The other variation is theproject period which has been exceeded by 2 years. Bothvariations were affected after two Needs AssessmentSurveys were conducted in 1983 and 1985. With thechange of the buoyant trend In the Construction Industryfrom the situation In 1977 to 1981 period to the post1983 period, the ainual trainee output was reduced froman orlginally estimated figure of 15,000 to about 7,000to be In llne with the prevailing needs. These changeswere agreed to by the visiting IDA Mission.

Consequent to this reduction was the saving In financialoutlay which was to some extent committed by the agreedextension of the project period by 2 years. However, afurther shortfall In the financial outlay was stillrecorded due to variations in the parity rate of $ toRupees between the project appraisal peri..d of 1979 -1980 and the project Implementation period 1982 - 1985.

However, this shortfall in the quantitative output wasadequately compensated for by the corresponding achieve-ments In qualititative aspects such as the developmentof short term training programmes, establishment ofNational Skill Standards and Trade Testing for thefirst time In the Construction Industry of Sri Lanka,the upgrading of the Training Centres and the Trainingof Instructors which have helped in a big way In thesetting-up of the Second Vocational Training Projectfor the Construction Industry.

The shortfall In the financial output In the generalproject activities has heen compensated for by a 25%Increase In the Technical Assistant component. By thismeans new consultancies in the area of highwaystraining, contractor development and Implementation ofa staff development programme were undertaken as a meansof achieving technology transfer.

(e) As regards effectiveness of World Bank support It maybe mentioned that the observations in Chapter V isvery significant. This demonstrated the effectivenessof the bank group, in responding with project revisionsto suit the changing needs during project implementation.This enabled the use of bank assistance for optimumbenefit.

We are hopeful that you will fInd these comnents beneficial: and

we look forward to receiving a copy of the final Pass-Through Audit

Report. In the meantime, if we may be of further assistance we will,

of course, be pleased to respond upon your request.

Sincerely,

R. Pag a ISecr

. .. I I . ' -, - ' I I .IANNEX 7()

-11,4- * . Page 1 of 4

THE VORLD BANKINTERNATIONAL FINANCE CORPORATIONSRI LANKA REStDENT MISSION

P 0 00 176tCOLOM8O, SRI LANKA

FACS1IMILE TRANSMITTAL FORM

DATE$ Novembr 9. 1966 NBSC "

UNDER OFPA6E9aSJ_ (Including this page)

FROIt berims Thllakab,na 4tG

TO. COMPANYtORIANIZATIONs INTDAIRADCITY AND COUNTRY. WASRINGTON D C U S&A

FOR THE ATTENTION OFt Ms. A. NOWICKIDEPT/DIVa ODDD2 ROOM NID H 601S

IX NUN3ER&

IUBJECTi SRI LANKA: eonstruction Industry Training Project (CR 1,130 CE)

41

Please see attached from M4r. Conrad de Ticsera

ccl

iu experience any prahlems with this transmission, please call back,on as psslbl.s

548070/71, 21340at 540357Not 21410 INDEVAS CE

Wv Lw* w zoo W 1WORLD B*W SRI Lk" 94 1 540357 P.02

~~~~~~~~~~~ANNEX 7(c)Page 2 -TO - 115 -

NVWTr;Y ci- LLcAt tovFr N-FNT, HouwrJM ANC rXxNsTt4LWTVN-'

istitute for Construction Training and Development"SaWi'ipNy" 123. Wetarm Mewetha. Cufombo07. S LenkiL (P.Q Boa 1975) luphan-Gsnwul Of1c 96093.2n236

You ow Date' 09th Nov. '88

Mr Agtxaneder NowiokiDivislon ChiefOperatlons Evaluation DepartmentThe World Bank1818 H Street N.W,Washington D.C. 20433U S A.

Dear Mr Nowicki

Srl Lanka Construction Indstr Trainino Prolzt.(Creit1130-CE) - Pasthrough Audit _Report

Thank you very much for your letter dated 30th September 1988 on the aboveSubject.

The Institute for Construction Training and Development (ICTAD) is pleasedto send the following observations on the Completlon Report In respect ofthe Construction Industry Training Project (CITP), which was Its predecessor.

It may be noted that this Independent consultant, was rocruited with theconcurrence of the IDA Visiting Mission to undertake the task of reviewingthe project activities and writing-up the Completlon Report. The trrtns ofreference and the modalities were also determined by the CITP In con?nzltatiOnwith the IDA Mission, During the Consultant's work, several discussions werehold with CITP staff and clarificatlons were made through such interactions.Accordingly there is general acceptance of the contents of this CompletionReport by the ICTAD.

Proet :ectives:

Wlth reference to the extent to which the project objectives were achieved,we observe that reference has been made in Page 13 to the objectives thatwere agreed to durlng the project preparation period in 1979/80. In Page 30para 4.01, reference has been made to the circumstances under which are-assessment of training targets were made. It would be seen that the projecthad achieved an output of 30%, In excess of the revised physical tralningt!rFrts

U...V-

A0, w 0 . ,,

ANNEX 7(c)_Page 3 of 4

- 116 -

In this context, It Is noteworthy to record some of the qualitative achievements,of the CITP In the training area. The development of short term modulartraining programmes for training of constructlon Industry workers to limitedbut employable skill levels In the shortest possible time, was a new conceptIn the vocatlonal training area Ir Sri Lanka. Associated with this is thedevelopment of training manuals, the training methodology and the Instructortraining programmes In support of above that were achieved by the CITP.Thmse outputs have contributed in a large way for a smooth take off of the2nd wcatlonal training project being implemented by ICTAD for the constructionindustry.

The recorded short-fall In physical output achieved compared to the originaltralnino taraet has bwen more than compenated by the achivements on iheabove qualitative development aspects.

Another qualitative achivement which In our opinion compensates for theshort-fall In quantitative achievement Is the development of the natlonal skillsstandards and the natlonal trade testing and certification system for constructionIndustry workers which was Introduced for the first time in Sri Lanka.

Apart from the above quantitative training targets, all other project objectiveshave been achieved by the CITP as recorded In the project document.

With reference to the reasons for variations between planned and actual output,the satement In Chapter 5 relating to the achievement of 65% estimatedtrainee output by the project, within a two year extended period, has io beviewed In the context of the project revislons that were Incorporated basedon regular reviews done by Visiting IDA Missions and the CITP. These revisionswere based on the 2 needs asssment surveys mentioned In Chapter 4 of thereport.

Tte CITP therefore took the logical course of action by training the requiredoutput of construction Industry workers to satisfy the estimated needs prevailingIn the post 1983 period on an annual basis, estimated at about 7,000, retherthan attempting to achieve the projected annual trainee output of about151000,.WIthin the original 3 year project period.

The varlation In the financial output has been mainly due to the reductionIn the expenditure on training materials etc. as a consequence to the reductionIn tralnee output, and due to the changes In the parity rates between thedollar and the Sri Lankan rupee.

The C-TP under the circumstances however attempted to commit a higherInveoxment In the technical assistance cost in the hope of achieving theobjective of technology transfer, as a long term Investment for a continuingconstruction Industry training activity.

_g Gm Smot :

In reupect of the World Bank support, It Is the opinlon of ICTAD, that theBank group has made a very significant contribution In re-shaping the projectobjectives to suit the prevailing needs. These changes were Influenced byexternal factors affecting the construction Industry. The Interest shown by

...2/-

Page 4 of 4

- 117 -

the Be-'k grop to shift the emphasis from quantitative outputs to qualitativeoutpute, and technology transfer through increasd technical assistance Inputsand the Implementation of a stff davelopmont programme Is a clear responseto changes In operating environment In a developing country. by a Bank groupmanaging and supervising & developm6nt credt agreement.

I hope the observations are of some help to you, In including the commentsof ICTAD In the pasthrough audit report.

WITH KIND REGARDS.

Yours sincerely

UC H de TimraDirootor GeneralINSTITUTE FOR CONSTRUCTIONTRAINING AND DEVELOPMENT